The AI Podcast Microsoft Furious as OpenAI Signs with AWS
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Nov 6, 2025 OpenAI has just signed a $38 billion deal with AWS, shaking up the tech landscape. This move allows OpenAI to expand its cloud capabilities after restructuring its ties with Microsoft. The ambitious plan includes a trillion-dollar infrastructure investment and partnerships with major players like NVIDIA and Oracle. A debate arises about whether this massive AI compute boom is sustainable or a bubble. The shift from crypto to AI among data centers signifies a pivotal transformation in the industry.
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OpenAI's Massive AWS Seven‑Year Commitment
- OpenAI signed a $38B, seven-year AWS deal that averages ~$5.4B per year and begins immediately.
- They aim to reach full AWS capacity by the end of next year with optional expansion in 2027.
Restructuring Enabled New Vendor Deals
- OpenAI restructured from non-profit to for‑profit, freeing it from Microsoft's exclusive approval over third‑party compute deals.
- That change enabled the new AWS contract and broader multi‑vendor compute strategy.
Aggressive Scale Plans And Revenue Gap
- OpenAI plans to spend over $1 trillion on compute and infrastructure in the next decade to scale services.
- The company currently makes about $13B annually and must massively grow revenue to justify the investment.