AWS Secures $38B OpenAI Deal, Bolstering Amazon’s AI Infrastructure Play
Amazon shares climbed 1.77% to $233.22 as markets digested the seismic implications of its newly inked cloud partnership with OpenAI. The seven-year, $38 billion agreement marks a strategic coup for AWS, wresting significant compute workloads from Microsoft Azure while providing OpenAI with critical Nvidia GPU access.
Third-quarter results already demonstrated AWS's momentum, with cloud revenue growth accelerating to 12% year-over-year. This deal crystallizes Amazon's position as a foundational LAYER in the AI infrastructure stack—a thesis that's driven AMZN's 148% return since 2020, dwarfing the S&P 500's performance.
Analysts now see nearly 20% upside potential as AWS becomes OpenAI's co-primary cloud provider. "Our infrastructure will support the next generation of AI models," AWS CEO Matt Garman stated, underscoring the deal's long-term significance beyond immediate financial terms.
