OpenAI and Amazon sign a $38 billion cloud computing deal

OpenAI isn’t finished securing the AI ​​infrastructure it needs to scale agents’ workloads quickly. The maker of ChatGPT said Monday that it has reached an agreement with Amazon to purchase $38 billion worth of cloud computing services over the next seven years.

OpenAI said it will immediately begin using AWS compute, aiming to deploy all capabilities before the end of 2026, with the ability to expand further in 2027 and beyond.

The deal comes on the heels of OpenAI’s restructuring last week, which freed the company from having to obtain Microsoft’s approval to buy computing services from other companies.

OpenAI’s deal with Amazon is part of its larger mission to grow computing power, where it will spend more than $1 trillion over the next decade. The company announced the establishment of new data centers in cooperation with Oracle, SoftBank, the United Arab Emirates and others. OpenAI has also struck deals with chipmakers Nvidia, AMD and Broadcom.

For some analysts, increased investment from OpenAI and other tech giants suggests the industry is headed toward an AI bubble, where huge sums of money are spent on boosting unproven, potentially dangerous technology, with no clear sign of a tangible return on investment.