Latent Space AI AWS Lands $38B OpenAI Partnership
Nov 6, 2025
Amazon's explosive $38 billion deal with OpenAI is reshaping AI infrastructure. With OpenAI's shift to AWS, they plan rapid deployment of capacities by 2027. This strategic move diversifies beyond Microsoft’s Azure, igniting intense competition in cloud computing. Other partnerships with giants like Oracle and NVIDIA expand OpenAI's influence. Meanwhile, the sustainability of AI's growth raises eyebrows amidst concerns of a bubble. The battle for computing dominance continues as both Amazon and Microsoft stake their claims.
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Massive Seven-Year AWS Partnership
- OpenAI signed a seven-year, $38B AWS deal, averaging about $5.4B per year and effective immediately.
- They plan to reach full AWS capacity by the end of next year with expansion options in 2027.
Restructuring Enabled New Cloud Deals
- OpenAI restructured from nonprofit to capped-profit, enabling it to sign major non-Microsoft compute contracts without Microsoft approval.
- This change let OpenAI quickly pursue AWS and other partners to scale beyond Azure capacity.
A Trillion-Dollar Compute Ambition
- OpenAI plans to spend over $1 trillion on compute and infrastructure in the next decade to scale services and data centers.
- They are pairing chip-maker deals, data center partners, and global buildouts to secure necessary capacity.