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Amazon Shares Rally on OpenAI’s $38 Billion AWS Deal

2 min read

Nov 4, 2025 9:25:20 AM

OpenAI has picked Amazon as a core cloud partner in its race for more computing power. OpenAI signed a $38 billion, seven-year cloud deal with AWS, lifting Amazon’s stock and signaling how central access to advanced chips has become to the next phase of artificial intelligence. Symbolic representation of tech giants colliding in the cloud.

Symbolic representation of tech giants colliding in the cloud.

What Happened

OpenAI and Amazon announced the agreement on November 3, 2025. The multiyear commitment gives OpenAI access to Amazon Web Services’ data centers and specialized infrastructure to train and run advanced AI models. OpenAI will begin using AWS immediately, with capacity targeted before the end of 2026 and room to expand in 2027 and beyond, according to company statements and news reports.

Why It Matters

For Amazon, the win validates AWS’s ability to supply scarce, high-performance computing at scale amid intense competition from Microsoft and Google. Investor reaction was swift: Amazon shares rose about 5% on the news, hitting record territory during Monday’s session. For OpenAI, the deal adds a second major cloud partner and helps ease a critical bottleneck—securing enough GPUs and supporting infrastructure—to keep pushing AI capabilities and to serve products like ChatGPT.

The Bigger Context

The move follows governance and structural changes at OpenAI that gave the company greater operational and financial flexibility. Those changes also altered its arrangement with longtime backer Microsoft, which had been the exclusive cloud provider earlier this year. With the AWS pact, OpenAI can now diversify beyond Microsoft—a strategic shift that could improve resilience, pricing leverage, and access to capacity as AI demand soars. The deal also underscores the industry’s escalating costs and the scramble among tech giants to lock in supply chains for cutting-edge chips and data center buildouts.

What’s Next

Execution now moves to the buildout. Both companies say OpenAI’s workloads will scale up quickly on AWS, with the bulk of capacity slated to come online by late 2026. Investors will watch for signs of margin impact—and revenue contribution—at AWS in upcoming quarters, as well as how the expanded compute access translates into new features, faster model iterations, and more reliable performance for end users.