AI Breakdown OpenAI Chooses Amazon — Microsoft Left Behind
Nov 6, 2025
Discover how OpenAI's $38 billion deal with Amazon redefines AI infrastructure, shifting power dynamics away from Microsoft. Unpack OpenAI's ambitious plan to spend over $1 trillion on compute in the next decade, raising questions about revenue scaling. Explore the intricate GPU supply chains and the transition of data centers from crypto to AI. Finally, delve into the implications of these cloud computing wars and who stands to gain in this rapidly evolving landscape.
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Massive Seven‑Year AWS Commitment
- OpenAI signed a $38B seven-year AWS deal that averages ~$5.4B per year and starts immediately.
- OpenAI expects full deployment by the end of next year with expansion options in 2027.
Restructuring Freed OpenAI To Diversify
- OpenAI restructured away from Microsoft approval, enabling new cloud contracts like AWS.
- The restructure let OpenAI stop relying exclusively on Azure as compute needs exploded.
OpenAI Building An End‑to‑End Compute Stack
- OpenAI is pursuing chip and data center deals across NVIDIA, AMD, Broadcom, Oracle, SoftBank and others.
- The company aims to build a global compute stack supporting massive future scale.