Amazon’s Stock Skyrockets Following Historic $38B OpenAI Cloud Deal
Amazon’s stock experienced a 4% surge on Monday, following the announcement of a landmark $38 billion cloud computing deal with OpenAI. This deal represents the largest partnership for the creator of ChatGPT outside of Microsoft.
The seven-year agreement will provide OpenAI with access to hundreds of thousands of Nvidia graphics processing units through Amazon Web Services (AWS). This will immediately scale up the AI company’s infrastructure capacity. OpenAI will commence the use of AWS compute resources without delay, with full capacity anticipated by the end of 2026.
“Scaling frontier AI requires massive, reliable compute,” stated OpenAI CEO Sam Altman. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
The deal significantly enhances Amazon’s AI credentials, which some investors had feared were lagging behind Microsoft and Google in the artificial intelligence race. Amazon plans to deploy hundreds of thousands of Nvidia’s GB200 and GB300 AI accelerators to power ChatGPT responses and train OpenAI’s next-generation models.
The partnership adds nearly $140 billion to Amazon’s market capitalization, with shares reaching all-time highs during Monday’s trading session.
Source: CNBC