Open AI OpenAI Switches Sides — $38B Deal with Amazon
Nov 6, 2025
OpenAI just struck a monumental $38 billion deal with AWS, shaking up the AI cloud services landscape. This partnership comes as a result of OpenAI restructuring for more flexibility, leaving Microsoft behind as a sole vendor. The podcast dives into OpenAI's ambitious plans for the next decade, including collaborations with major players like Oracle and NVIDIA. There's also a lively debate on whether current AI investments are a bubble or a smart move. The burgeoning cloud compute wars are heating up, with NVIDIA and data-center providers poised to win big.
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Massive Seven‑Year AWS Commitment
- OpenAI signed a seven-year, $38B AWS deal averaging ~$5.4B per year and begins using AWS immediately.
- They aim to reach full AWS capacity by the end of next year with expansion options from 2027 onward.
Restructure Enabled New Cloud Partners
- OpenAI restructured governance to allow non‑Microsoft cloud contracts after leaving tighter Microsoft approval terms.
- That restructuring enabled the AWS deal because previous Microsoft approval rights limited new compute partnerships.
All‑In Buildout Across Chips And Data Centers
- OpenAI plans to spend over $1 trillion in the next decade across compute, data centers, and chips.
- They secured partnerships with Oracle, SoftBank, UAE, NVIDIA, AMD, and Broadcom to build that capacity.