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Amazon (AMZN) stock surged more than 5% on Monday morning, reaching a new all-time high, after the tech giant announced a landmark $38 billion partnership with OpenAI. The multi-year agreement, made through Amazon Web Services (AWS), marks OpenAI’s largest cloud infrastructure deal to date and significantly expands its compute capacity for developing advanced AI systems.
OpenAI taps AWS for AI scale-up
Under the terms of the agreement, OpenAI will access AWS infrastructure comprising hundreds of thousands of cutting-edge Nvidia GPUs and the ability to scale to tens of millions of CPUs. The compute resources will be used to support OpenAI’s growing portfolio of AI workloads, from training frontier models to serving inference for popular tools like ChatGPT.
New multi-year, strategic partnership with @OpenAI will provide our industry-leading infrastructure for them to run and scale ChatGPT inference, training, and agentic AI workloads.
Allows OpenAI to leverage our unusual experience running large-scale AI infrastructure securely,… pic.twitter.com/HZGeld5M9q
— Andy Jassy (@ajassy) November 3, 2025
OpenAI CEO Sam Altman said:
“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
The infrastructure rollout begins immediately, with full capacity deployment targeted by the end of 2026. The deal also allows for continued expansion into 2027 and beyond.
A shift in OpenAI’s cloud strategy
The AWS partnership is OpenAI’s first major cloud deal since it restructured into a for-profit public benefit corporation and renegotiated terms with Microsoft. The updated Microsoft agreement removed its exclusive right to first refusal on cloud computing contracts, paving the way for OpenAI to diversify its infrastructure providers.
This latest deal signals a more competitive environment among cloud giants to secure AI clients. Amazon’s investment comes on the heels of its completed AI data center project and plans to supply rival Anthropic with one million custom chips by 2025.
Market implications and AI demand concerns
The announcement buoyed investor confidence in Amazon, which recently posted better-than-expected Q3 earnings. The stock’s rally reflects optimism over AWS’s role in the rapidly expanding AI market and its ability to monetize high-performance compute infrastructure.
However, the deal also raises broader questions about sustainability in the AI race. OpenAI has already committed to multi-billion-dollar partnerships with Oracle, CoreWeave, and other providers. Analysts warn that the explosion in AI-related spending (projected to push OpenAI’s costs to $1 trillion by 2030) may outpace revenue growth, fueling concerns about a potential bubble in the sector.
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Source:: Amazon Stock Soars 5% to All-Time High After $38B OpenAI Deal