Amazon is 4% up after the $38 billion on a seven-year deal with OpenAI.
OpenAI literally broke up with Microsoft as their exclusive cloud provider a few months ago and now AWS gets hundreds of thousands of Nvidia chips to run ChatGPT through 2027.
I get that this validates AWS for AI scale but $38B seems really steep even over 7 years? Are hyperscalers just overpaying to lock in these marquee clients or is this actually what it costs to play in AI now. Can’t tell if this is strategic genius or FOMO spending.
https://finance.yahoo.com/news/openai-amazon-sign-38-billion-060510080.html?guccounter=1