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OpenAI’s $38 Billion AWS Deal and Munich AI Cloud Signal New Phase in AI Compute Race

Industry leaders say power and ready data-center shells, not GPUs, are now the bottleneck.

Overview

  • OpenAI agreed to spend $38 billion over seven years on AWS, gaining access to “hundreds of thousands” of Nvidia GB200/GB300 systems for training and running its models.
  • Microsoft’s latest filing revealed OpenAI’s multibillion-dollar quarterly loss, cutting Microsoft’s annual net income by $3.1 billion and earnings by $0.41 per share under equity accounting.
  • Satya Nadella said Microsoft already has chips it cannot deploy due to a lack of powered, finished data-center “warm shells,” underscoring energy constraints in key U.S. regions.
  • Deutsche Telekom and Nvidia will invest about €1 billion in a Munich data center with up to 10,000 GPUs, slated to go online in early 2026 with data retained in Germany and powered by renewables.
  • Beyond AWS, reports cite staggered capacity commitments of roughly $250 billion with Microsoft and $300 billion with Oracle, intensifying questions about whether such outlays can be recouped.