OpenAI has signed a seven-year, $38 billion agreement with Amazon Web Services (AWS), a subsidiary of Amazon, in a strategic move aimed at strengthening its position in artificial intelligence (AI) and expanding its cloud computing infrastructure.
Through this partnership, the developer of ChatGPT seeks to secure vast computing and storage resources—from both cloud providers like AWS and chip manufacturers—as part of its race to develop a general artificial intelligence (AGI) model that could fully replicate human cognitive abilities.
Although experts are divided on when such a model might emerge, some predict it could appear within the next few years, while others believe it may take at least a decade—or may never be achieved at all.
Massive resources and strategic collaboration
OpenAI CEO Sam Altman stated in a Monday press release that developing advanced AI requires enormous and reliable computing power. He added that the partnership with AWS will strengthen OpenAI’s computing ecosystem, supporting a new era that aims to make advanced AI accessible to everyone.
Altman also revealed that OpenAI has secured $1.4 trillion in commitments from cloud service providers and semiconductor companies. According to the U.S. Energy Information Administration, fulfilling these contracts will require 30 gigawatts of electricity—over 2% of the total installed power capacity in the United States by the end of 2023.
Investor skepticism and stock performance
Despite these ambitions, some investors have expressed concerns over OpenAI’s massive spending, especially since the company’s projected revenue for this year is around $13 billion, and—according to Altman—it will not be profitable until 2029.
In a recent podcast interview, Altman voiced frustration over these doubts, asserting that actual revenues will be “much higher” than current estimates, and that the company expects strong growth in the coming years.
Nvidia emerges as a key winner
The agreement with AWS will provide OpenAI with additional cloud computing capacity, with the full infrastructure expected to be operational by the end of 2026. This setup will rely heavily on graphics processing units (GPUs) made by Nvidia, the dominant leader in the market.
These processors will be used not only to develop OpenAI’s new models but also to run ChatGPT, which now serves more than 800 million weekly users.
Amazon’s stock rose 4.71% to $255.67, hitting a record high and adding nearly $140 billion to its market value. Nvidia’s stock also gained momentum, boosted by the OpenAI–Amazon deal and a separate announcement that Microsoft had leased additional chips and servers from cloud provider Iren in a deal worth $9.7 billion.
Microsoft, OpenAI’s main partner with a 27% stake following investments exceeding $13 billion, has become increasingly open to the idea of OpenAI sourcing cloud capacity from other providers.
This collaboration with Iren also highlights a broader industry reality: even the largest cloud providers like Microsoft can no longer meet all the surging computing demands driven by the AI boom.
