Amazon stock surged 5% after a $38 billion deal with OpenAI for access to Nvidia AI chips via Amazon’s cloud. OpenAI will utilize Nvidia GPUs in Amazon’s AI servers, scaling to full capacity by 2026. The move follows OpenAI’s string of deals with cloud providers and chipmakers, sparking concerns of a market bubble. OpenAI’s costs may surpass $1 trillion by 2030, raising questions about financial sustainability. OpenAI also struck a new agreement with Microsoft to transform into a for-profit public benefit corporation, potentially paving the way for an IPO valued at $1 trillion. AWS announced completion of a massive AI data center project and plans to provide Anthropic with one million custom AI chips by 2025. Amazon reported record-high earnings last week, driven by AWS growth.

Read more at Yahoo Finance: Amazon stock jumps on $38 billion deal with OpenAI to use hundreds of thousands of Nvidia chips