Amazon Jumps After OpenAI’s $38B AWS Deal

OpenAI has inked a sweeping cloud pact with Amazon that jolted markets. OpenAI signed a $38 billion cloud deal with AWS, a seven-year commitment that gives the ChatGPT maker immediate access to massive computing power — and sent Amazon shares sharply higher.

What Happened

On November 3, 2025, OpenAI and Amazon announced a multi-year partnership worth $38 billion. The agreement allows OpenAI to run and scale core AI workloads on AWS infrastructure right away, including clusters built around hundreds of thousands of Nvidia GPUs and Amazon EC2 UltraServers, with the ability to expand to tens of millions of CPUs. Both companies said the collaboration begins immediately.

Market Reaction

Amazon shares rose about 5% to a record high after the news, extending a rally sparked by strong quarterly results at AWS. Analysts viewed the win as validation that Amazon remains a central player in the race to supply compute for frontier AI, even as Microsoft and Google tout their own high-profile partnerships.

Why It Matters

The deal signals a notable shift in OpenAI’s cloud strategy. Following a recent restructuring that loosened earlier constraints tied to Microsoft, OpenAI is diversifying its suppliers to secure the scale it needs for training next-generation models and serving ChatGPT at ever larger volumes. For Amazon, landing OpenAI as a marquee customer strengthens AWS’s case that it can deliver the performance, scale, and security required for the most demanding AI workloads.

Timeline And Scope

The companies said the agreement spans seven years, with capacity is slated to be online by end-2026 and flexibility to expand further into 2027 and beyond. AWS plans to deploy advanced Nvidia GB200 and GB300 accelerators in tightly networked clusters to support both high-volume inference and model training.

The Bigger Picture

OpenAI’s AWS pact fits into a broader wave of multibillion-dollar compute commitments across the industry. Reporting from major outlets indicates OpenAI is lining up substantial, multi-provider capacity as demand for AI infrastructure surges — a strategy that underscores the scale of the opportunity, and the financing questions, that now define the AI boom.

Sources

• OpenAI turns to Amazon in $38 billion cloud services deal after restructuring — Reuters (November 3, 2025)
• Amazon's $38 bln OpenAI deal shows it is no longer an AI laggard — Reuters (November 4, 2025)
• OpenAI strikes $38bn computing deal with Amazon — Financial Times (November 3, 2025)
• AWS and OpenAI announce multi-year strategic partnership — OpenAI (November 3, 2025)
• AWS and OpenAI announce multi-year strategic partnership — Amazon (November 3, 2025)