Amazon and OpenAI Sign $38 Billion Deal for Nvidia AI Chips to Power Next-Gen ChatGPT

In a landmark move for the artificial intelligence industry, Amazon Web Services (AWS) and OpenAI have signed a $38 billion deal to supply computing infrastructure powered by Nvidia’s most advanced GPUs, including the GB200 and GB300 AI accelerators.
The seven-year agreement marks one of the largest AI infrastructure partnerships in history, reinforcing the growing global demand for high-performance compute power to train and deploy generative AI systems.

AWS to Provide Massive GPU Capacity for OpenAI

Under the agreement, AWS will grant OpenAI access to hundreds of thousands of Nvidia GPUs, designed to accelerate training for ChatGPT and future large language models (LLMs).
The chips will be deployed in specialized, large-scale clusters across AWS data centres, enabling faster processing, lower latency, and improved efficiency for OpenAI’s expanding product ecosystem.

OpenAI will begin utilizing AWS infrastructure immediately, with the full rollout expected before end-2026. The contract also includes provisions for OpenAI to expand its use of AWS cloud services as its compute requirements grow.

“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone,” said Sam Altman, CEO of OpenAI.

AWS CEO Matt Garman added, “As OpenAI continues to push the boundaries of what’s possible, AWS’s best-in-class infrastructure will serve as the backbone for their AI ambitions.”

A Major Win for Amazon in the Cloud Competition

The deal is a significant victory for Amazon, which has recently trailed Microsoft Azure and Google Cloud in securing high-value AI infrastructure contracts.
Following the announcement, Amazon shares surged 4%, closing at a record high. The company’s stock has now risen 14% over two trading days, marking its strongest performance since 2022.

The partnership cements AWS’s position as a global leader in cloud infrastructure, especially in AI-focused compute clusters, and highlights Amazon’s renewed commitment to dominating the AI infrastructure market.

OpenAI’s Expanding Global Compute Network

The AWS-OpenAI collaboration joins a growing list of multi-billion-dollar infrastructure partnerships designed to diversify OpenAI’s compute capabilities beyond Microsoft Azure, its primary partner.

• Microsoft recently signed a $250 billion extension of its Azure collaboration with OpenAI.

• Oracle secured a $300 billion data centre deal with OpenAI.

• Google Cloud Platform (GCP) has also become part of OpenAI’s global compute network.

• CoreWeave, a specialist AI cloud provider, has an existing $22.4 billion contract with OpenAI.

These massive partnerships underscore OpenAI’s broader $1.4 trillion AI infrastructure strategy, which analysts warn could reshape global data centre economics — or trigger an AI infrastructure investment bubble.

Nvidia: The Biggest Winner

The deal also represents another major triumph for Nvidia Corporation, whose GPUs remain the backbone of the global AI revolution.
Under this agreement, AWS will install hundreds of thousands of Nvidia AI chips in its hyperscale data centres. The new GB200 and GB300 accelerators are designed for large-scale AI workloads, allowing OpenAI to train and deploy more complex neural networks with unprecedented speed and efficiency.

The growing competition among hyperscalers — Amazon, Google, Microsoft, and Oracle — has intensified the global race to secure Nvidia’s cutting-edge AI chips, which remain in limited supply due to record demand.

AI Infrastructure Race Intensifies

Amazon’s move comes amid increasing competition for AI infrastructure dominance. The company already holds a major stake in Anthropic PBC, a rival AI company founded by former OpenAI executives.
Just last week, Amazon announced that its Trainium2-powered data centre for Anthropic had gone operational, signalling AWS’s ability to combine in-house AI chips with Nvidia hardware for hybrid performance scaling.

Meanwhile, Google has pledged to supply Anthropic with one million AI chips in a separate multi-billion-dollar deal, further intensifying the race to control the global compute backbone for generative AI.

Conclusion

The $38 billion AWS–OpenAI deal represents a pivotal moment in the evolution of the global AI industry.
It not only solidifies Amazon’s role in the AI infrastructure arms race but also demonstrates OpenAI’s strategy to secure multi-cloud redundancy and ensure scalability for the next generation of ChatGPT and advanced AI systems.

As Nvidia continues to dominate the AI hardware market, the collaboration between Amazon, OpenAI, and Nvidia marks the beginning of a new era — one defined by vast computing power, trillion-dollar investments, and the pursuit of artificial intelligence at an unprecedented scale.