What: OpenAI’s $38 billion AWS deal positions Amazon to dominate AI-powered retail infrastructure and potentially marginalise rival e-commerce platforms.

Why it is important: This deal accelerates the shift to agentic commerce, raising the stakes for retailers to adapt as Amazon consolidates power in AI-driven retail infrastructure.

Amazon’s landmark $38 billion deal with OpenAI to provide AWS infrastructure for ChatGPT and related AI services is set to transform the retail landscape. By securing this partnership, Amazon positions itself as the primary enabler of AI-powered commerce, with the potential to marginalise rival e-commerce platforms and consolidate its dominance in digital retail infrastructure. This move comes alongside Amazon’s investment in custom AI chips, which aim to lower costs and make advanced AI more accessible to retailers of all sizes. The rise of agentic commerce, where AI platforms mediate product discovery, purchase, and brand engagement, is fundamentally shifting power away from traditional websites and toward digital intermediaries like ChatGPT. As homepage-centric retail gives way to AI-driven personalisation and curation, retailers must adapt their digital strategies to maintain relevance and visibility in an increasingly algorithmic marketplace. These developments underscore the urgency for brands to optimise for AI-driven discovery, rethink customer engagement, and prepare for a future where success depends on navigating the answer economy.IADS Notes: In November 2025, Inside Retail analysed the AWS-OpenAI deal’s implications for Amazon’s dominance and the risk of marginalising competitors. Bloomberg’s November 2024 coverage highlighted Amazon’s custom AI chip strategy, while the Financial Times and Journal du Net in late 2025 emphasised the rise of agentic commerce and the need for retailers to adapt. Forbes in July 2025 confirmed that AI shopping agents are driving a shift away from traditional retail models, validating the urgency for digital transformation.

Will OpenAI’s Amazon deal shut out rival e-commerce players?