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Amazon and OpenAI signs Sh4.9 trillion deal to expand world’s AI

The rapid advancement of AI technology has created unprecedented demand for computing power across the world

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by VICTOR AMADALA

Business06 November 2025 - 10:01
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In Summary


  • Amazon has a high experience running large-scale AI infrastructure securely, reliably, and at scale–with clusters topping 500K chips.
  • In a joint statement, the two firms said that AWS's leadership in cloud infrastructure, combined with OpenAI's pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT.
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Partnership will enable OpenAI to run its advanced AI workloads on AWS’s world-class infrastructure starting immediately.



The world’s top technology firms have signed a $38 billion (Sh4.9 trillion) partnership to scale Artificial Intelligence (AI) at the time world is riding on the innovation to catalyse social and economic growth.

Amazon Web Services (AWS) and OpenAI announced a multi-year, strategic partnership that will see them leverage each other’s strengths to advance AI.

Under this new $38 billion agreement, which will have continued growth over the next seven years, OpenAI will access AWS compute comprising hundreds of thousands of state-of-the-art NVIDIA GPUs, with the ability to expand to tens of millions of CPUs to rapidly scale agentic workloads.

Amazon has a high experience running large-scale AI infrastructure securely, reliably, and at scale–with clusters topping 500K chips.

In a joint statement, the two firms said that AWS's leadership in cloud infrastructure, combined with OpenAI's pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT.

The rapid advancement of AI technology has created unprecedented demand for computing power across the world.

“As frontier model providers seek to push their models to new heights of intelligence, they are increasingly turning to AWS due to the performance, scale, and security they can achieve."

"OpenAI will immediately start utilising AWS compute as part of this partnership, with all capacity targeted to be deployed before the end of 2026 and expand further into 2027 and beyond,’’ the firms said ion a statement.

The infrastructure deployment that AWS is building for OpenAI features a sophisticated architectural design optimised for maximum AI processing efficiency and performance.

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.

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.

“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.”

“As OpenAI continues to push the boundaries of what's possible, AWS's best-in-class infrastructure will serve as a backbone for their AI ambitions,” said Matt Garman, CEO of AWS.

The global value of AI is expected to exceed $2 trillion in 2026, driven by increasing spending on AI-optimised servers, semiconductors, software, and the integration of AI into consumer products like PCs and smartphones.

This represents a significant increase from the $1.5 trillion spending projected for 2025. 

OpenAI has quickly become one of the most popular publicly available model providers in Amazon Bedrock with thousands of customers, including the world’s top companies.

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