Amazon Stock Soars as AWS Strikes $38 Billion Cloud Deal with OpenAI
Amazon (NASDAQ: AMZN) shares surged 5.4% on Monday after the company’s cloud division, Amazon Web Services (AWS), announced a multi-year $38 billion partnership with OpenAI, marking one of the largest AI infrastructure deals in the tech industry.
The agreement will allow OpenAI to run its advanced artificial intelligence (AI) workloads on AWS infrastructure immediately. Over the next seven years, OpenAI will gain access to hundreds of thousands of NVIDIA GPUs, with the ability to scale up to tens of millions of CPUs to power and expand its AI operations.
AWS to Power OpenAI’s Next Generation of AI Models
Under the partnership, AWS will supply OpenAI with Amazon EC2 UltraServers featuring NVIDIA GB200 and GB300 chips, optimized specifically for high-efficiency AI training and inference tasks. This infrastructure will support a range of workloads, from powering ChatGPT responses to training OpenAI’s next-generation AI models.
“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, co-founder and CEO of OpenAI. “Our partnership with AWS strengthens the global compute ecosystem that will drive this next era of innovation and bring advanced AI capabilities to everyone.”
Expanding an Existing AI Collaboration
The new deal expands on the companies’ earlier collaboration. Earlier this year, OpenAI’s open-weight foundation models were made available on Amazon Bedrock, giving AWS users access to a wider range of powerful AI models. According to AWS, OpenAI quickly became one of the platform’s most-used model providers, attracting thousands of enterprise customers.
All infrastructure under the new partnership is expected to be deployed by the end of 2026, with additional expansion capacity planned through 2027 and beyond.
This latest move highlights Amazon’s growing influence in the global AI and cloud computing race, as major technology firms continue investing heavily in large-scale computing power to stay ahead of the competition.
