Amazon (AMZN) has secured a significant $38 billion, seven-year partnership with OpenAI (PC:OPAIQ), enhancing Amazon Web Services (AWS) capabilities to train and run advanced AI models like ChatGPT. This collaboration has boosted AMZN stock by nearly 6%. OpenAI will access numerous Nvidia (NVDA) GPUs, including the advanced GB200 and GB300 chips, to support its AI initiatives, with full operational capacity anticipated by late 2026. As part of its evolving cloud strategy, OpenAI recently diversified its partnerships, distancing itself from exclusive reliance on Microsoft (MSFT). This pivotal deal positions AWS as a frontrunner in AI infrastructure, further solidifying Amazon’s role in the competitive AI landscape. According to analysts, Amazon stock carries a “Strong Buy” consensus, with a target price of $291.24, indicating a potential upside of 14.15% from its current valuation. This partnership marks a crucial step in Amazon’s strategy to expand its influence in the AI space.
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