• by Laurie Sullivan , November 3, 2025

Amazon's cloud unit Amazon Web Services (AWS) has signed a $38 billion deal to supply OpenAI's demand for computing power with Nvidia chips as part of a seven-year deal.

The agreement, announced Monday, accelerates the development and availability of advanced artificial intelligence (AI) tools that improve efficiencies and personalization for advertising.

Rapid advancements in AI technology have created unprecedented demand for computing power from all types of companies. These projects span from GoDaddy -- which recently released its AI ambitions to launch Airo, a multi-AI agent platform -- to xAI’s massive Colossus 2 datacenter that will house more than 500,000 Nvidia GPUs for power.

OpenAI has committed to spending $1.4 trillion on infrastructure to build and power its AI models -- an unprecedented amount even for some of the major companies supporting advertising that need the power to process AI-generated advertisements, analysis from new metrics and data models, and targeted campaigns.

Publicis, for example, will invest $326 million over three years to build its AI capabilities. Accenture has made a $3 billion commitment to AI over three years to integrate into its services.

Major investments are being made with partners across industries that will support advertising. OpenAI also plans to spend $250 billion on Microsoft’s Azure cloud unit. Oracle’s partnership with OpenAI includes a $300 billion investment to provide access to its datacenters.

The Wall Street Journal reported that it was disclosed earlier this year that Google’s cloud platform is among the companies powering ChatGPT. It is  estimated that OpenAI's recent deals total $1.4 trillion with companies, including the multi-year partnership with Broadcom to co-develop and deploy customer AI accelerators for its data centers. 

Nvidia Chief Executive Jensen Huang has said he predicts AI infrastructure spend will reach between $3 trillion to $4 trillion by the end of the decade. Anything even close to that is a “radically bullish view " for Nvidia, AMD and Broadcom, reported Morningstar, citing a research note from Cantor Fitzgerald stock analyst CJ Muse.

Nvidia and AMD design graphics processing units, while Broadcom designs application-specific integrated circuits. All are needed to support AI and ad targeting for advertisers.

Amazon last week said it will support Anthropic with about 1 million of its custom chips by the end of 2025. In a press release, the company reported Anthropic will use 500,000 of its Trainium2 chips for its Claude AI models as part of the tech giant's Project Rainier, a massive AI compute cluster spread across multiple data centers in Mississippi and Indiana.

AI compute clusters can link thousands of specialized chips across data centers and servers, so they can work together as one system capable of training and running AI models.