Amazon shares rose to a record high Monday after the tech giant said it struck a $38 billion deal with OpenAI.

Shares of Amazon (AMZN) were up close to 5% around $255 in recent trading, leaving them on track to close at a record high. Read Investopedia’s full daily markets coverage here.

Amazon said the agreement, which begins immediately and runs over seven years, gives OpenAI access to Amazon Web Services’ bank of hundreds of thousands of Nvidia (NVDA) chips, with the option to expand.

The company said that “AWS’s leadership in cloud infrastructure combined with OpenAI’s pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT,” OpenAI’s popular AI chatbot.

Why This Is Significant

The agreement marks the latest in a flurry of multibillion-dollar AI infrastructure deals in recent weeks that have boosted shares of the companies involved, helping lift the major U.S. stock indexes to record highs, but have also stoked worries about a growing bubble in the space.

OpenAI CEO Sam Altman said the partnership “strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

AWS CEO Matt Garman said that OpenAI’s use of AWS “will serve as a backbone for their AI ambitions.”

With Monday’s surge, Amazon shares have added close to 17% in 2025, with most of those gains coming in the past week since the tech giant posted better-than-expected earnings on strong growth in its cloud business.

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