Amazon Rallies After OpenAI, AWS Strike $38 Billion Cloud Deal

OpenAI announced a $38 billion, multi-year cloud deal with AWS, a move that sent Amazon’s stock higher on November 3, 2025 and signaled a major expansion of the ChatGPT maker’s computing options beyond Microsoft.

What Happened

OpenAI and Amazon Web Services unveiled a seven-year partnership that lets OpenAI begin running core AI workloads on AWS immediately. The agreement includes access to hundreds of thousands of Nvidia GPUs, with additional capacity rolling out through the end of 2026 and room to expand after that. Executives from both companies framed the deal as a way to secure reliable compute at massive scale for training and serving next-generation models.

Why It Matters

The pact marks OpenAI’s most significant step away from relying solely on Microsoft’s Azure. After a recent restructuring of its agreements, OpenAI can now tap multiple clouds, a diversification that could strengthen resilience and bargaining power as AI compute needs surge. For Amazon, landing OpenAI is a high-profile win in the intensifying race to host frontier AI workloads, reinforcing AWS’s pitch on performance and scale. The companies said capacity will be targeted to be fully deployed by late 2026, with expansion possible into 2027.

Market Reaction

Investors cheered the announcement. Amazon shares rose roughly 5% on November 3, 2025, reflecting expectations that new, steady AI infrastructure demand from OpenAI could bolster AWS growth and underscore its competitiveness against Microsoft and Google.

What’s Next

Near term, OpenAI will move workloads to AWS as new clusters come online, while AWS builds out additional dedicated capacity. Longer term, the tie-up could influence where developers and enterprises place their own AI bets, especially as providers race to offer faster training, lower inference costs, and more reliable supply of cutting-edge chips. Both companies framed the alliance as foundational to scaling “frontier” systems that will power consumer apps and enterprise tools alike.

Sources

• OpenAI turns to Amazon in $38 billion cloud services deal after restructuring — Reuters (November 3, 2025)
• AWS and OpenAI announce multi-year strategic partnership — Amazon (November 3, 2025)
• OpenAI and Amazon sign $38 billion deal for AI computing power — Washington Post/AP (November 3, 2025)