Let Freedom: Political News, Un-Biased, Lex Fridman, Joe Rogan, CNN, Fox News Amazon’s $38B Power Play with OpenAI
Nov 6, 2025
Amazon has clinched a staggering $38 billion deal with OpenAI, signaling a fierce resurgence in the cloud wars. This contract opens doors for AWS to host groundbreaking AI models while diminishing OpenAI's reliance on Microsoft. The discussion dives into OpenAI's ambitious infrastructure plans and partnerships with major tech players. Skepticism about the AI investment boom is explored alongside Microsoft's own significant contracts. The race for GPU capacity and data center dominance becomes increasingly competitive, setting the stage for future developments.
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Massive Seven-Year AWS Commitment
- OpenAI signed a seven-year, $38 billion AWS deal averaging about $5.4 billion per year.
- They begin immediate onboarding and target full deployment by the end of next year with optional expansion in 2027.
Restructuring Enabled Multi-Vendor Compute
- OpenAI restructured away from nonprofit ties that required Microsoft sign-off on third-party compute deals.
- That restructuring enabled immediate AWS onboarding and other multi-vendor compute partnerships.
Aggressive $1 Trillion Spend Plan
- OpenAI plans to spend over $1 trillion in the next decade on compute and infrastructure.
- The company currently earns about $13 billion annual revenue and aims to scale massively to meet future demand.