Hard Fork AI The $38B Cloud Deal That Broke the Internet
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Nov 6, 2025 A massive $38 billion partnership between OpenAI and Amazon shakes up the AI landscape, sparking intense reactions from competitors. OpenAI’s shift from Azure reflects its ambition to secure top-notch cloud services. Discussions dive into the trillion-dollar compute goals and whether the current AI investment spree is sustainable or a bubble. Microsoft's substantial deal and the evolution of GPU supply chains highlight the dynamics of the cloud computing arms race. It’s a captivating look at the future of AI infrastructure and who stands to benefit.
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OpenAI's Seven-Year AWS Commitment
- OpenAI signed a $38B, seven-year AWS deal to secure massive cloud capacity immediately. They plan full deployment by the end of next year and can expand further from 2027 onward.
Restructuring Unlocked New Cloud Options
- OpenAI restructured away from nonprofit constraints so it could sign large cloud contracts beyond Microsoft's Azure. That allowed immediate AWS onboarding without Microsoft sign-off.
All-Hands Strategy For Compute Scale
- OpenAI is pursuing an ecosystem strategy: deals with Oracle, SoftBank, UAE, NVIDIA, AMD, and Broadcom for data centers and chips. They aim to combine chip suppliers and data-center partners to scale compute aggressively.