Amazon Stock Rallies To Record Highs On $38 Billion OpenAI Cloud Deal

Core Insights - Amazon's stock surged to record highs following a $38 billion cloud deal with OpenAI, marking a significant partnership for Amazon Web Services [1][5] - The deal is a seven-year strategic partnership that will provide OpenAI access to Nvidia's top computing chips, with most capacity expected by the end of 2026 [2] - Amazon's recent third-quarter earnings report showed its best cloud growth since 2022, alleviating investor concerns about AWS's competitive position against Microsoft and Google [3] Company Developments - The partnership with OpenAI is Amazon's first cloud contract with the AI company, which has been a key partner for Microsoft [1][4] - OpenAI's restructuring into a public benefit corporation has resulted in Microsoft acquiring a 27% stake in OpenAI, while also signing a deal for an additional $250 billion in Azure cloud services [4] - OpenAI has also committed to spending over $300 billion on cloud computing services with Oracle, indicating a diversification of its cloud partnerships [5] Market Reaction - Following the announcement of the OpenAI deal, Amazon's stock rose by 5% to $256.29, achieving another record high [5] - The stock broke out above a buy point of $238.85, reflecting strong market confidence in Amazon's growth prospects [5]