The seven-year agreement is the companies’ first computing partnership and is part of Amazon’s efforts to grow its cloud business.

The deal between OpenAI (OPENAI) and Amazon (AMZN) should provide a “new positive vibe” for the e-commerce and cloud computing giant, Wedbush Securities said. Read for more.

Amazon (AMZN) has signed a massive $38 billion, seven-year deal with OpenAI (PC:OPAIQ), the company behind ChatGPT. Under the agreement, Amazon Web Services (AWS) will provide the computing power needed to train and run OpenAI’s next-generation AI models.

Shares of cloud computing and online retail behemoth Amazon (NASDAQ:AMZN) jumped 4.9% in the afternoon session after the company announced a landmark $38 billion, multi-year cloud services agreement with OpenAI,

Amazon.com will supply OpenAI with cloud computing services under a multi-year $38 billion deal, giving the ChatGPT maker access to hundreds of thousands of Nvidia graphics processors to train and run its artificial intelligence models.

Wall Street is looking to keep up a rally that raged throughout October, when investors piled into growth and AI-linked names, with Big Tech and the "Magnificent Seven" leading market moves. Optimism around easing US-China trade tensions also fueled gains.