OpenAI has agreed to purchase $38 billion in cloud computing services from AWS, marking the first deal between the two tech giants. Amazon’s stock (NASDAQ: AMZN) surged 5% on the news, outperforming the S&P 500 and Nasdaq Composite. The partnership will see OpenAI utilize AWS servers and Nvidia chips to power its AI models immediately.

Dave Brown of AWS confirmed that the capacity allocated for OpenAI is separate and already in use. Amazon’s multi-faceted growth strategy, including e-commerce dominance and strong advertising revenue, is bolstered by AWS’s rapid expansion in AI. The Motley Fool Stock Advisor team has identified Amazon as a top investment opportunity, despite not being in their top 10 stock picks.

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Read more at Nasdaq: Why Did Amazon Stock Jump 5% Today?