Amazon Hits Record High After $38 Billion OpenAI Deal

Amazon shares closed 4% higher on Monday, a record finish, after OpenAI signed a $38 billion cloud deal with Amazon Web Services (AWS), marking a major shift away from Microsoft as its sole cloud provider.

The multi-year agreement allows OpenAI to run workloads on AWS infrastructure powered by Nvidia GPUs, expanding capacity through 2026. Amazon will also build new facilities dedicated to OpenAI’s AI training and inference systems.

The deal underscores Amazon’s growing influence in the AI space, even as it continues backing Anthropic, another leading AI firm. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era,” said OpenAI CEO Sam Altman.

Amazon’s AWS division reported over 20% revenue growth last quarter, outpacing expectations and reaffirming its position as a global cloud leader amid intensifying competition from Microsoft and Google.