Amazon Web Services (AWS) has entered a $38 billion, seven-year agreement with OpenAI to provide computing power for AI workloads, sending Amazon.com Inc (NASDAQ:AMZN)’s shares 4.7% higher to about $256.
Under the deal, OpenAI will begin using AWS infrastructure immediately, accessing hundreds of thousands of Nvidia Corp (NASDAQ:NVDA, ETR:NVD) GPUs housed in Amazon’s data centers.
The partnership marks OpenAI’s first major collaboration with AWS, moving away from its prior reliance on Microsoft’s cloud services.
AWS will supply GPUs optimized for AI inference and training of next-generation models, including Black models and Amazon EC2 UltraServers.
The infrastructure is designed for low-latency, large-scale AI processing, with clusters capable of supporting 10s of millions of CPUs.
“Scaling frontier AI requires massive, reliable compute," said OpenAI co-founder and CEO Sam Altman. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
Matt Garman, AWS CEO, added: “As OpenAI continues to push the boundaries of what's possible, AWS's best-in-class infrastructure will serve as a backbone for their AI ambitions.”
The full deployment of the resources is expected by the end of 2026.
Shares of Amazon gained around 4.3% on Monday morning.