OpenAI Partners With AWS In $38B Cloud Pact To Scale AI Workloads Using Nvidia GPUs

• OpenAI will immediately start utilizing AWS compute as part of this partnership, with all capacity targeted for deployment by the end of 2026, and the ability to expand further into 2027 and beyond.
• The companies stated that this agreement would enable them to expand to tens of millions of CPUs, allowing for rapid scaling of agentic workloads.
• Last week, Amazon raised its 2025 capital expenditure estimate to $125 billion, up from the prior expectation of $118 billion, as it scales up its AI investment.

Amazon Web Services (AWS) and OpenAI announced on Monday a multi-year, strategic partnership that provides AWS’s infrastructure to run and scale the ChatGPT maker’s core artificial intelligence (AI) workloads, effective immediately. 

The companies said that under the $38 billion agreement, which is expected to continue growing over the next seven years, OpenAI is accessing AWS compute, comprising hundreds of thousands of state-of-the-art Nvidia (NVDA) Graphic Processing Units (GPUs).

This would help with the ability to expand to tens of millions of CPUs to rapidly scale agentic workloads. “Clustering the NVIDIA GPUs—both GB200s and GB300s—via Amazon EC2 UltraServers on the same network enables low-latency performance across interconnected systems, allowing OpenAI to efficiently run workloads with optimal performance,” Amazon said.

Retail sentiment on Amazon remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. Shares of the company were up nearly 5% in early trading.

AI Scaling And Partnerships

Amazon.com (AMZN) said that the swift scaling of AI technology has now created “unprecedented demand” for computing power. The company stated that as frontier model providers seek to elevate their models to new heights of intelligence, they are increasingly turning to AWS.

According to the companies, OpenAI will immediately start utilizing AWS compute as part of this partnership, with all capacity targeted for deployment by the end of 2026, and the ability to expand further into 2027 and beyond.

Amazon said that the clusters are designed to support various workloads, from serving inference for ChatGPT to training next-generation models, with the flexibility to adapt to OpenAI's evolving needs.

Last week, Amazon raised its 2025 capital expenditure estimate to $125 billion, up from the prior expectation of $118 billion, as it scales up its AI investment.

Executive Take On The Partnership

AWS CEO Matt Garman said that as OpenAI continues to push its boundaries, AWS’ infrastructure will serve as a “backbone for their AI ambitions.”

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

Shares of Amazon have gained over 17% this year and have jumped nearly 32% in the last 12 months. 

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Also See: MongoDB Names Cloudflare’s Chirantan Desai As New CEO, Stock Jumps 9%

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