Amazon shares soar as OpenAI picks AWS for $38B cloud deal
Amazon shares jumped nearly 5% on Monday, closing at $256.41, after OpenAI signed a huge seven-year, $38 billion contract with Amazon Web Services (AWS) to power its AI projects.
OpenAI gets quick access to AWS's cloud muscle now, with even more coming by late 2026 and beyond.
The deal reduces OpenAI's reliance on Microsoft
This move helps OpenAI rely less on Microsoft and sets it up for a possible $1 trillion IPO.
For Amazon, it's a big win—showing AWS is still the go-to for cutting-edge AI tech as competition heats up in the cloud world.
OpenAI will utilize NVIDIA GPUs via AWS
The deal means OpenAI will use hundreds of thousands of NVIDIA GPUs through AWS to train and run their AI models—think ChatGPT and beyond.
With AWS already posting strong growth, this partnership makes Amazon an even bigger player in the race to shape the future of AI.