A few weeks ago, Amazon Web Services had a massive outage, but now has struck a major deal with OpenAI. Here's what you need to know about the new partnership.

The AWS partnership is OpenAI's first major cloud computing deal since it struck a new agreement with Microsoft, which gave it more flexibility.

When it comes to artificial intelligence (AI), perhaps no one commands more attention than Sam Altman, the CEO of ChatGPT maker OpenAI. On Nov. 3, OpenAI announced a headline-grabbing $38 billion partnership with e-commerce and cloud titan Amazon ( AMZN 1.81%).

In a multi-year agreement, OpenAI agreed to pay Amazon.com $38 billion for processing power. This is the first time the AI startup and the cloud giant have worked together. The agreement, which was made public on Monday,

On Monday, Amazon’s announcement of a $38 billion agreement for Amazon Web Services to provide infrastructure for OpenAI’s artificial intelligence workloads sent Amazon stock up about 5% to a new all-time high.

Amazon gains a marquee client for AWS, its profit engine, validating billions invested in AI-ready infrastructure. The deal bolsters AWS against rivals Microsoft Azure and Google Cloud, while tying OpenAI closer to Amazon's ecosystem—building on prior integration of OpenAI's open-weight models into AWS services like Bedrock.

CNBC's MacKenzie Sigalos reports on Amazon’s record-setting rally after signing a $38 billion cloud deal with OpenAI.

By Twesha Dikshit and Purvi Agarwal 2025 - The S&P 500 and Nasdaq kicked off November on firmer ground on Monday, after a slew of AI deals boosted megacap companies Amazon and Nvidia, while Kenvue shares soared after Kimberly-Clark's buyout deal.