November 3, 2025
Cloud nine or cloud overdraft?
OpenAI Signs $38B Cloud Computing Deal with Amazon
OpenAI’s $38B Amazon cloud splurge sparks ‘who’s paying?’ panic and bubble buzz
TLDR: OpenAI committed $38B over seven years to Amazon’s cloud after loosening its Microsoft deal. Commenters are split: some cheer the scale-up, many worry about who foots the bill, whether models hit Bedrock, and if Amazon’s AI spending spree could turn into a bubble backfire.
OpenAI just slapped down a jaw-dropping $38 billion tab for Amazon’s cloud over seven years—days after renegotiating its Microsoft tie so it could shop around. And the comments? Pure chaos. The loudest chorus is the money panic: does OpenAI even have $38B and will Amazon ever see that in real cash? Finance-flavored posters warn Amazon’s cloud is burning through cash on AI gear, while doomsayers joke the industry is “writing a lot of cheques” that might not clear. Another hot thread: product gossip. Will OpenAI’s models show up in Bedrock (Amazon’s AI app store), or is this just compute behind the scenes? Skeptics dunk on the timing—“hey guys, us too!”—calling it Amazon’s FOMO moment after Microsoft, Google, and friends flex their mega-spends.
Context check for the non-tech crowd: this is about renting massive computer power to run AI like OpenAI’s ChatGPT. OpenAI previously bought everything from Microsoft; shortages pushed them to diversify with Oracle and now Amazon. Meanwhile, OpenAI is stacking chip and data center deals with Nvidia, AMD, Broadcom, SoftBank, and the UAE—like a “collect them all” tour. Some cheer the scale-up (“more servers, faster upgrades”), but critics see bubble vibes, pointing to OpenAI’s lack of profits and a mounting legal tab. The mood swings between big bet energy and bigger bill anxiety, with memes, market fear, and Bedrock rumors keeping the drama sizzling.
Key Points
- •OpenAI agreed to buy $38 billion in Amazon cloud computing services over seven years.
- •From 2019–2023, OpenAI bought all computing power from Microsoft under an exclusive contract.
- •Microsoft renegotiated its agreement last week, allowing OpenAI to use any cloud provider without approval.
- •OpenAI is building new data centers with partners including Oracle, SoftBank, and the United Arab Emirates, and has deals with Nvidia, AMD, and Broadcom.
- •Tech giants including Amazon, Google, Meta, and Microsoft committed over $360 billion in capital expenditures in the past year; OpenAI has strong revenue but is not yet profitable.