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OpenAI Signs 7-Year, $38 Billion AWS Deal to Power Next-Gen AI

A recent restructuring opened the door to multicloud deals, accelerating record AI infrastructure spending that investors say may be running ahead of revenue.

Overview

  • The agreement takes effect immediately, targets full deployment of purchased capacity by the end of 2026, and includes options to expand usage from 2027 onward.
  • AWS will provide Amazon EC2 UltraServers with access to hundreds of thousands of Nvidia GPUs, including GB200 and GB300 clustered on the same network for low-latency performance.
  • The pact follows OpenAI’s loosening of prior Microsoft approval requirements and sits alongside other large commitments reported with Azure (~$250 billion) and Oracle (~$300 billion).
  • Amazon shares jumped to record levels after the announcement and analysts said the deal could lift AWS’s backlog, signaling renewed momentum for AWS after market share slippage.
  • Financial leaders from HSBC and General Atlantic cautioned that AI capex may be outrunning near-term revenues, and reporting highlights execution risks tied to chip supply, power needs, and data-center buildouts such as AWS’s new Indiana site.