Amazon shares jump 5% on OpenAI’s $38B AWS partnership

Amazon shares rallied Monday after OpenAI unveiled a sweeping, multi-year partnership with Amazon Web Services valued at $38 billion—fueling expectations for a bigger role for AWS in the AI infrastructure race.

What happened

On November 3, 2025, OpenAI announced a seven-year agreement to run and scale core AI workloads on AWS infrastructure. The deal includes access to “hundreds of thousands” of Nvidia GPUs—spanning GB200 and GB300 accelerators—and is targeted to bring all planned capacity online by the end of 2026, with room to expand in 2027 and beyond, according to Amazon and reporting from Reuters. Shares of Amazon rose roughly 5% following the announcement, with Reuters noting the stock hit an all-time high during the session.

Why it matters

The agreement underscores the industry’s hunger for compute as model sizes and usage surge. It also signals OpenAI’s move to diversify beyond a single cloud provider after a restructuring that ended Microsoft’s exclusive cloud rights last week, as reported by AP and Reuters. For AWS, landing OpenAI bolsters investor confidence that Amazon remains highly competitive in AI infrastructure.

Context

OpenAI has been rapidly securing computing commitments amid soaring demand for ChatGPT and new models. CEO Sam Altman has said the company aims to invest around $1.4 trillion to develop roughly 30 gigawatts of compute capacity—illustrating the scale of anticipated needs, per Reuters. Earlier this year, OpenAI’s open-weight models also became available to AWS customers via Amazon Bedrock, per Amazon.

What’s next

OpenAI will start using AWS immediately, with capacity ramping through 2026. Executives cast the tie-up as foundational for the next phase of AI: “Scaling frontier AI requires massive, reliable compute,” Altman said in the announcement. AWS chief Matt Garman called AWS’s infrastructure “a backbone” for OpenAI’s ambitions, per Amazon.

Sources

• OpenAI turns to Amazon in $38 billion cloud services deal after restructuring — Reuters (November 3, 2025)
• OpenAI and Amazon sign $38 billion deal for AI computing power — Associated Press (November 3, 2025)
• AWS and OpenAI announce multi-year strategic partnership — Amazon (November 3, 2025)
• Amazon stock jumps 5% after OpenAI announces $38 billion AWS partnership — Business Insider (November 3, 2025)