OpenAI Signs $38 Billion Deal With Amazon

The deal is yet another sign of the AI industry becoming increasingly entangled, with OpenAI now at the center of major partnerships with industry players including Google, Oracle, Nvidia, and AMD.

The AWS agreement is also notable because OpenAI rose to prominence in part through its partnership with Microsoft—Amazon’s biggest cloud rival. Amazon is also a major backer of one of OpenAI’s key competitors, Anthropic. Amazon and Microsoft are currently developing their own AI models to compete with startups like OpenAI.

Many now worry that the race to build ever more infrastructure—and the unusual financial agreements behind the deals—are a sign of an AI bubble. Between 2026 and 2027, companies are projected to spend upwards of $500 billion on AI infrastructure in the US, according to reporting by financial journalist Derek Thompson.

Patrick Moorhead, chief analyst at Moor Insights & Strategy, says he believes that ...