Perplexity AI Microsoft Left Fuming as OpenAI Picks Amazon
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Nov 6, 2025 OpenAI's stunning $38 billion deal with AWS leaves Microsoft in disbelief, dubbed a 'cloud betrayal' by insiders. The discussion dives into OpenAI’s ambitious plans for a trillion-dollar spending spree over the next decade. Topics include the restructuring that frees OpenAI from Microsoft's constraints, and its partnerships with tech giants like Oracle and NVIDIA. Debate heats up around whether the AI investment surge is a bubble, while Microsoft scrambles with new contracts to enhance its cloud capacity. The future of AI infrastructure looks thrilling and uncertain!
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Massive Seven-Year AWS Commitment
- OpenAI signed a $38B, seven-year AWS deal to immediately start onboarding and reach full capacity by end of next year.
- The contract can expand in 2027, signaling a multi-year compute commitment and strategic cloud diversification.
Restructuring Enabled New Cloud Partners
- OpenAI restructured to allow non-Microsoft cloud deals after moving from nonprofit to capped-profit.
- That change removed Microsoft sign-off constraints and enabled the AWS partnership and other vendor agreements.
Trillion-Dollar Scale-Up Plan
- OpenAI plans over $1 trillion spending over the next decade across chips, data centers, and cloud deals.
- The scale aims to match anticipated AI demand but raises questions about profitability and feasibility.