OpenAI (OPENAI) announced on Monday that it has signed a deal with Amazon (AMZN) Web Services worth $38B to help supply it with “hundreds of thousands” of Nvidia's (NVDA) GPUs. Amazon shares rose 5.4% in premarket trading,

Amazon Web Services (AWS) and OpenAI ink new $38 billion deal to host OpenAI's new NVIDIA GB200 and GB300 AI servers to be deployed in 2026.

Analysts raise targets to $350 as orders hit $500B. Amazon secures GPUs for OpenAI in $38B deal. UAE export approved.

US stocks finished the first trading day of November mixed, with Big Tech names like Amazon (AMZN) and Nvidia (NVDA) rising near record-high levels, fueling a continued rally in the AI trade even as those gains weren't broadly distributed.

Amazon announced a multi-year $38 billion deal with OpenAI that would allow the ChatGPT developer to access hundreds of thousands of Nvidia's AI chips through its cloud computing infrastructure.

“While Anthropic, the company behind the Claude AI chatbot, reiterated its commitment to Amazon, we see this move with Google speaking to the capacity-constrained AI and data center market, as well as prudently diversifying its exposure,” veteran fund manager Chris Versace wrote for TheStreet Pro.

The Dow handed over 0.5% in afternoon trade with Nvidia a big loser. The Nasdaq composite suffered a 1.8% drop, and the S&P 500 retreated 1%, with Palantir stock sliding nearly 9%. Small-cap stocks on Tuesday were spared the wrath, illustrated by the Russell 2000 index giving up 1.5%.