openai, amazon and nvidia Updates

The artificial intelligence sector is experiencing a significant surge in investment and strategic partnerships, particularly in cloud computing and specialized hardware. OpenAI, the creator of ChatGPT, recently finalized a substantial 7-year, $38 billion cloud computing deal with Amazon Web Services (AWS) on November 3, 2025. This agreement grants OpenAI access to hundreds of thousands of Nvidia AI chips, including GB200 and GB300 processors, and millions of CPUs, crucial for training advanced AI models and handling ChatGPT queries. This move marks a shift for OpenAI towards a multi-cloud strategy, diversifying its infrastructure beyond its previous exclusive reliance on Microsoft Azure. Amazon's stock reacted positively, surging to a record high and gaining almost 17% in 2025, with analysts anticipating a boost to AWS revenue and market share. AWS CEO Matt Garman highlighted that this partnership demonstrates Amazon's infrastructure capability to support vast AI workloads, with plans to double AWS capacity by late 2027, incorporating both Nvidia chips and custom silicon like Trainium. OpenAI CEO Sam Altman emphasized the necessity of massive, reliable computing power for scaling frontier AI, noting that the company's steeply growing revenue supports these significant infrastructure investments, which also include a $300 billion deal with Oracle as part of a larger $1.4 trillion commitment to AI infrastructure. Meanwhile, Microsoft, a major OpenAI partner holding a 27.5% stake valued at $135 billion, also secured next-generation Nvidia AI chips through a $9.7 billion deal with Australia's Iren, prepaying 20% for early access to hardware hosted at Iren's Texas AI campus starting in 2026. Microsoft Azure, the world's second-largest cloud provider, previously secured a $250 billion cloud business commitment from OpenAI. Google, through its parent company Alphabet, continues to strengthen its position in AI infrastructure, software, and autonomous vehicles with Gemini AI products and Waymo. Google Cloud reported a 34% growth, and Alphabet develops its own Tensor Processing Unit (TPU) chips, hitting over $100 billion in revenue, partly driven by AI demand. Both Alphabet and Microsoft are considered strong long-term AI investments. Meta, despite a 6% stock drop after its third-quarter earnings due to increased capital expenditure on AI infrastructure, saw its revenue surge 26% to $51.2 billion. CEO Mark Zuckerberg is committed to investing in compute capacity for superintelligence, even though Meta lacks a cloud computing business, meaning its AI spending is solely for internal use. Both Alphabet and Meta are utilizing debt to finance their substantial AI infrastructure buildouts. Beyond chips and software, the AI boom is driving demand for physical infrastructure like data centers, which require immense power, water, and cooling. Experts predict US data center power demand will double in five years, potentially consuming as much electricity as Japan by 2030, creating opportunities for companies in power generation, engineering, construction, and data center REITs. Nvidia's stock also saw a rise, despite President Donald Trump's comments about potentially restricting exports of advanced Blackwell AI chips to keep them exclusive to the United States. In the broader investment landscape, Palantir Technologies faces scrutiny over its

Key Takeaways

• OpenAI signed a 7-year, $38 billion cloud computing deal with Amazon Web Services (AWS) on November 3, 2025, gaining access to hundreds of thousands of Nvidia AI chips.
• This Amazon-OpenAI partnership signifies OpenAI's shift to a multi-cloud strategy, diversifying from its previous exclusive reliance on Microsoft Azure.
• Amazon's stock surged to a record high, gaining almost 17% in 2025, following the OpenAI deal, with analysts expecting increased AWS revenue and market share.
• OpenAI has committed $1.4 trillion to AI infrastructure, including the $38 billion AWS deal and a $300 billion deal with Oracle, to develop 30 gigawatts of computing resources.
• Microsoft, a key OpenAI partner with a 27.5% stake, secured next-generation Nvidia AI chips through a $9.7 billion deal with Australia's Iren, ensuring future hardware access.
• Google (Alphabet) is a top AI stock, with Google Cloud growing 34%, developing its own TPU chips, and hitting over $100 billion in revenue driven by AI demand.
• Meta's stock dropped 6% after its Q3 earnings due to increased AI infrastructure spending, despite a 26% revenue surge to $51.2 billion, as it lacks a cloud computing business.
• Both Alphabet and Meta are using debt to finance their significant AI infrastructure buildouts.
• The AI boom is driving massive demand for physical infrastructure, with US data center power demand projected to double in five years, consuming as much electricity as Japan by 2030.
• Nvidia's stock rose despite comments from President Trump about potentially restricting exports of advanced Blackwell AI chips to the United States.

OpenAI partners with Amazon for $38 billion AI computing deal

OpenAI and Amazon Web Services signed a $38 billion deal on November 3, 2025. This agreement allows OpenAI to use Amazon's cloud computing services and access hundreds of thousands of Nvidia AI chips. The deal helps OpenAI meet the high demand for AI computing power. This partnership comes after OpenAI changed its exclusive cloud provider agreement with Microsoft. OpenAI will start using AWS immediately, with full capacity by late 2026 and further expansion possible.

Amazon stock soars after $38 billion OpenAI cloud deal

Amazon's stock surged after a $38 billion cloud deal with OpenAI, following strong earnings. Jim Cramer noted Amazon's impressive turnaround, with its stock up over 16% year to date. OpenAI will use Amazon Web Services (AWS) for its AI infrastructure, accessing hundreds of thousands of Nvidia GPUs in US data centers. This deal shows OpenAI is moving towards a multi-cloud strategy, no longer relying only on Microsoft Azure. Amazon plans to double its AWS capacity by the end of 2027, including custom silicon like Trainium and Nvidia chips.

Amazon stock rises after $38 billion OpenAI chip deal

Amazon's stock jumped after announcing a $38 billion multi-year deal with OpenAI. This agreement allows OpenAI, the creator of ChatGPT, to use hundreds of thousands of Nvidia AI chips through Amazon Web Services. The deal highlights Amazon's goal to lead the AI cloud market and compete with Microsoft. This significant investment in Nvidia chips shows the high demand for hardware needed to train large AI models. Analysts believe this partnership will boost AWS revenue and market share in the growing AI cloud services sector.

Amazon stock hits record high after OpenAI cloud deal

Amazon shares reached a record high on Monday after the company announced a $38 billion cloud computing deal with OpenAI. This seven-year agreement gives OpenAI access to Amazon Web Services' vast collection of hundreds of thousands of Nvidia chips. OpenAI CEO Sam Altman stated the partnership strengthens the compute ecosystem for advanced AI. AWS CEO Matt Garman said OpenAI's use of AWS will support its AI goals. Amazon's stock has gained almost 17% in 2025, with most of that growth in the past week.

OpenAI signs $38 billion cloud deal with Amazon Web Services

OpenAI signed a major 7-year, $38 billion cloud computing deal with Amazon Web Services. OpenAI CEO Sam Altman said this partnership strengthens the broad compute ecosystem needed for frontier AI. This is the first time the ChatGPT maker has partnered with Amazon for infrastructure. The deal follows OpenAI's recent restructuring, which removed Microsoft's exclusive cloud rights. OpenAI will use Amazon's UltraServer clusters, including Nvidia GB200 and GB300 processors, to train models and handle ChatGPT queries. AWS CEO Matt Garman noted this deal proves Amazon's infrastructure can support vast AI workloads.

OpenAI secures $38 billion Amazon cloud deal

OpenAI has signed a $38 billion deal with Amazon, further diversifying its cloud providers. This agreement allows OpenAI to access Amazon's custom infrastructure, including hundreds of thousands of Nvidia GB200 and GB300 chips for AI training and inference. OpenAI CEO Sam Altman stated that scaling frontier AI requires massive and reliable computing power. This move helps OpenAI limit its dependence on any single cloud provider, a strategy noted by analyst Patrick Moorhead. The deal also provides access to millions of CPUs for agentic AI workloads, which are becoming increasingly important.

OpenAI inks $38 billion cloud deal with Amazon

OpenAI signed a $38 billion deal with Amazon Web Services for cloud computing power. CEO Sam Altman emphasized the need for massive, reliable compute to scale frontier AI. This partnership gives OpenAI access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. AWS CEO Matt Garman stated Amazon's infrastructure will support OpenAI's ambitions. OpenAI has committed to spending $1.4 trillion on AI infrastructure, including a $300 billion deal with Oracle, to develop 30 gigawatts of computing resources.

OpenAI secures Nvidia chips through $38 billion Amazon deal

OpenAI signed a $38 billion deal with Amazon Web Services to power its AI tools. This agreement provides OpenAI with access to hundreds of thousands of Nvidia's specialized AI chips. Amazon shares rose 4% after the announcement on Monday. The deal allows OpenAI to meet the high demand for computing power, with full capacity deployed by late 2026 and further expansion planned. OpenAI CEO Sam Altman stated that revenue is growing steeply, supporting these forward bets on infrastructure.

Alphabet and Microsoft are top AI stocks for the next decade

Alphabet and Microsoft are highlighted as strong AI stocks for the next decade. Alphabet, Google's parent company, excels in AI infrastructure, software, and autonomous vehicles with its Gemini AI products and Waymo subsidiary. Google Cloud saw a 34% growth, and the company develops its own TPU chips. Microsoft has deep corporate ties and a significant partnership with OpenAI, holding a 27.5% stake worth about $135 billion. OpenAI also committed $250 billion in new cloud business to Microsoft Azure, which is the world's second-largest cloud provider. Both companies are well-positioned to dominate the growing AI market.

Two AI stocks to consider for long-term investment

Alphabet and Microsoft are strong contenders for long-term AI investments. Alphabet, Google's parent, covers AI infrastructure, software, and autonomous vehicles through its Gemini AI products and Waymo. Google Cloud experienced a 34% growth, and Alphabet develops its own Tensor Processing Unit chips. Microsoft has strong corporate relationships and a key partnership with OpenAI, owning a 27.5% stake valued at $135 billion. OpenAI also committed $250 billion in new cloud business to Microsoft Azure, the world's second-largest cloud provider. These companies are set to lead the AI market, which could be worth trillions.

Meta's AI strategy strengthens despite stock drop

Meta's stock dropped 6% after its third-quarter earnings report, partly due to plans for increased capital expenditure on AI infrastructure. The company also took a $15.9 billion non-cash charge related to a deferred tax asset adjustment. Despite the stock dip, Meta's revenue surged 26% to $51.2 billion. CEO Mark Zuckerberg emphasized the need for more compute capacity to pursue superintelligence and enhance existing apps. Unlike its peers, Meta lacks a cloud computing business, meaning its AI spending is solely for its own use. Meta's Reality Labs division continues to incur significant losses, but its core apps remain highly profitable.

Meta's AI spending raises concerns despite stock gains

Meta's stock is up 8% this year, but its third-quarter earnings report raised concerns about its AI spending. Unlike Amazon, Google, and Microsoft, Meta has not yet shown clear revenue from its AI investments. Critics also worry about Meta using private debt for AI data centers. CEO Mark Zuckerberg believes AI spending is vital for achieving superintelligence and accelerating the core business. Amazon, Google, and Microsoft all reported strong earnings and increased AI capital expenditure forecasts. Amazon's AWS revenue grew 20%, and Alphabet hit over $100 billion in revenue, both boosted by AI demand.

Invest in AI infrastructure beyond just chips and software

The AI boom creates investment opportunities beyond just chips and software. "Second-level" thinking focuses on the physical infrastructure that powers AI, such as data centers. These facilities require massive amounts of power, water, cooling, and concrete. Experts predict US data center power demand will double in five years, consuming as much electricity as Japan by 2030. Companies involved in power generation, like natural gas providers Cheniere Energy and nuclear companies like Constellation Energy, are crucial. Engineering and construction firms such as Quanta Services and Fluor Corporation build the necessary systems. Data center REITs like Digital Realty Trust and utilities like NextEra Energy also play vital roles in this expanding AI economy.

Google and Meta use debt to fund AI growth

Alphabet and Meta are among the major tech companies using debt to finance their artificial intelligence infrastructure. This strategy is currently seen as "bullish" by some experts. Tom Essaye from Sevens Report Research discussed this trend with Yahoo Finance reporters Ines Ferré and Brooke DiPalma. The discussion highlighted how these companies are securing funds for their significant AI buildouts.

Nvidia stock rises despite Trump's chip export comments

Nvidia stock rose over 1% in premarket trading, recovering from recent losses, despite President Donald Trump's comments about restricting exports of Blackwell AI chips. Trump stated that the most advanced AI chips would be exclusive to the United States. He also mentioned companies producing their own electricity and selling the excess. While these comments could impact Wall Street's hopes for Nvidia's China sales, retail investors on Stocktwits remained "extremely bullish." Nvidia's valuation is currently just below its $5 trillion market capitalization achieved last week.

Two AI ETFs offer strong long-term investment potential

Two exchange-traded funds (ETFs) are highlighted as strong long-term AI investment options. The Invesco QQQ ETF offers significant AI exposure with a low 0.20% expense ratio, holding major tech companies like Nvidia, Microsoft, and Amazon. These top 10 stocks make up over 56% of the fund's assets. The Ark Autonomous Technology and Robotics ETF, managed by Cathie Wood, is an actively managed fund that seeks unique AI and robotics opportunities beyond mega-cap stocks. Its holdings include Tesla, Teradyne, and Kratos Defense and Security. Both ETFs provide excellent AI exposure, catering to different investment goals and risk tolerances.

Microsoft secures Nvidia AI chips with $9.7 billion Iren deal

Microsoft signed a $9.7 billion deal with Australia's Iren to secure next-generation Nvidia AI chips. This move helps Microsoft ensure future hardware for its cloud and artificial intelligence goals. By prepaying 20% of the contract, Microsoft gets early access to upcoming Nvidia GPUs. These chips will be hosted at Iren's Texas AI campus starting in 2026. This significant investment highlights the intense competition for high-powered AI chips and reshapes global tech development and alliances.

Datavault AI stock drops after Wolfpack Research report

Datavault AI shares traded lower on Monday after the company condemned a "self-serving and malicious" short report from Wolfpack Research. CEO Nathaniel Bradley stated the report contained "false and defamatory claims" meant to manipulate the stock. Datavault AI plans to sue Wolfpack Research and has hired legal counsel for litigation and regulatory action. The company reaffirmed its strong intellectual property, including over 70 patents for AI-driven data valuation and blockchain tokenization. Datavault AI also highlighted recent partnerships, acquisitions, and upcoming launches of data-exchange platforms.

Palantir's high valuation challenges investment experts

Jefferies Equity Analyst Brent Thill maintained a "Sell" rating and a $60 price target for Palantir Technologies, despite its strong third-quarter results. Thill acknowledged Palantir's "rock solid" fundamentals and impressive operational execution, especially in its commercial segment, with US commercial revenue projected to grow 121% by Q3 2025. However, he argued that Palantir's "astronomical valuation" of 90 times revenue defies traditional investment logic. Thill suggested better AI investment opportunities exist, citing companies like Amazon, Cloudflare, and CrowdStrike trading at much lower multiples. He noted a difference between institutional investors, who focus on valuation, and retail investors, who may be more influenced by market momentum.

Sources

• OpenAI and Amazon sign $38 billion deal for AI computing power
• Cramer: Amazon-OpenAI cloud deal puts an exclamation point on a remarkable few days
• Amazon stock jumps on $38 billion deal with OpenAI to use hundreds of thousands of Nvidia chips
• Amazon's Stock Climbs to Fresh High on $38B Cloud Computing Deal With OpenAI
• OpenAI strikes 7-year, $38B cloud computing deal with Amazon Web...
• OpenAI Signs $38 Billion Deal With Amazon
• OpenAI signs $38bn cloud computing deal with Amazon
• OpenAI signs $38 billion deal to power AI tools with 'hundred of thousands' of Nvidia chips via Amazon Web Services
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