Amazon.com Inc. shares jumped 4% on Monday after the company announced a $38 billion partnership with OpenAI, granting the ChatGPT developer access to hundreds of thousands of Nvidia AI chips through Amazon Web Services (AWS).
Under the agreement, OpenAI will run large-scale AI workloads on Nvidia’s graphics processing units hosted within Amazon’s data centers. The company said OpenAI will begin using AWS’s AI infrastructure immediately and scale up to the full contracted capacity before the end of 2026.
The deal expands OpenAI’s growing network of cloud and chip partnerships as demand for AI computing power continues to surge. The company already has a $300 billion agreement with Oracle Corp. and separate deals with CoreWeave worth more than $22 billion. OpenAI has also recently signed supply and collaboration agreements with Broadcom, AMD, and Nvidia itself.
The increasingly interconnected web of AI infrastructure deals has fueled concerns of an overheating market, with analysts warning that soaring capital expenditures could outpace realistic demand. OpenAI’s infrastructure commitments have raised eyebrows, as its projected costs are expected to exceed $1 trillion by the end of the decade, far outstripping its current revenue base.
The new partnership comes just days after OpenAI reached an agreement with Microsoft to restructure as a for-profit public benefit corporation — a move seen as paving the way for a potential IPO. According to Reuters, OpenAI’s public listing could value the company at about $1 trillion.
For Amazon, the OpenAI deal reinforces its position in the AI infrastructure race and highlights AWS’s expanding role as a critical enabler of generative AI development. The announcement follows the company’s strong third-quarter earnings last week, which exceeded Wall Street expectations and lifted its stock to a record high.
AWS also said it recently completed a large-scale AI data center project and will deliver 1 million custom AI chips to OpenAI rival Anthropic by the end of 2025, underscoring its ambition to become a central player in the rapidly evolving AI ecosystem.
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