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Amazon up 5% on OpenAI's $38B, 7-year AWS deal

Written by Aanya Menon | Nov 3, 2025 5:31:37 PM

Amazon shares jumped about 5% on November 3, 2025, after OpenAI announced a seven-year, $38 billion partnership to run its AI workloads on Amazon Web Services (AWS). The agreement marks a major expansion of OpenAI’s cloud footprint following its recent restructuring and revised terms with Microsoft.

What happened

OpenAI will immediately begin using AWS, with all planned capacity slated to be online by the end of 2026 and room to expand into 2027 and beyond. The deal provides access to “hundreds of thousands” of Nvidia AI chips via AWS to train and run models like ChatGPT, according to company statements reported on November 3.

Why it matters

The move underscores the intensifying race for AI compute and positions AWS as a key infrastructure provider for frontier models. It also reflects OpenAI’s strategy to diversify cloud partners after governance changes last week removed Microsoft’s exclusive rights to supply compute, giving OpenAI more operational flexibility to secure capacity at scale.

Market reaction

Amazon’s stock rallied roughly 5% intraday and hit an all-time high, adding tens of billions of dollars in market value. Investors viewed the agreement as validation of AWS’s competitiveness in supplying advanced AI infrastructure, including clusters built around Nvidia’s GB200- and GB300-class accelerators.

What’s next

Both companies framed the pact as foundational for scaling future AI systems. OpenAI CEO Sam Altman highlighted the need for massive, reliable compute to advance model capabilities, while Amazon emphasized that the phased build-out targets full capacity by late 2026 with potential expansion in 2027.

Key details at a glance

  • Deal size and term: $38 billion over seven years.
  • Scope: Training and inference for OpenAI models on AWS.
  • Hardware: Access to hundreds of thousands of Nvidia GPUs via AWS.
  • Timeline: Immediate usage; full capacity targeted by end-2026; expansion potential in 2027.

Sources

  • Reuters: OpenAI turns to Amazon in $38 billion cloud services deal after restructuring (Nov. 3, 2025). Link
  • Associated Press: OpenAI and Amazon sign $38B deal for AI computing power (Nov. 3, 2025). Link
  • Original: Business Insider coverage (Nov. 3, 2025). Link