Amazon Stock Rises Following $38 Billion Agreement with OpenAI

Amazon's stock reached a peak of $258.6 before settling at $254 at the close of the trading session, reflecting a 4 percent increase. This surge followed the announcement of a significant $38 billion deal with OpenAI, which will allow the artificial intelligence company to operate its systems on Amazon's data centers. The agreement grants OpenAI access to a vast array of Nvidia's specialized AI chips through Amazon Web Services (AWS), enabling the company to enhance its AI tools. Specifically, OpenAI will utilize "hundreds of thousands" of these advanced chips, with the potential to scale up to tens of millions of CPUs to efficiently manage complex workloads. This partnership is particularly noteworthy as it comes shortly after OpenAI modified its longstanding relationship with Microsoft, which had been its exclusive cloud computing provider until this year. The new agreement is set to evolve over the next seven years, providing OpenAI with substantial computational resources, including hundreds of thousands of state-of-the-art NVIDIA GPUs. AWS has established a reputation for securely and reliably managing large-scale AI infrastructure, with capabilities that include clusters exceeding 500,000 chips. The combination of AWS's robust cloud infrastructure and OpenAI's innovations in generative AI is expected to enhance the user experience for millions of ChatGPT users. OpenAI's co-founder and CEO emphasized the necessity of substantial and dependable computing power for scaling advanced AI technologies. He noted that the collaboration with AWS would fortify the computing ecosystem essential for ushering in a new era of AI accessibility. The CEO of AWS echoed this sentiment, highlighting that the infrastructure provided by AWS is uniquely suited to support OpenAI's ambitious AI projects. OpenAI is set to begin utilizing AWS's computing resources immediately, with plans for full deployment of the capacity by the end of 2026, and potential further expansion into 2027 and beyond.

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