Amazon Secures Landmark $138B AWS Deal as OpenAI Bets Big on Trainium Chips
- Grace N
- Mar 8
- 1 min read
Amazon's strategic partnership with OpenAI has significantly expanded, culminating in an unprecedented $138 billion total commitment to Amazon Web Services (AWS). The monumental deal, which extends their existing agreement by an additional year, features a commitment from OpenAI to consume approximately 2 gigawatts of Amazon's custom Trainium compute capacity, spanning both current Trainium3 and the upcoming Trainium4 chips. In response to the agreement—which also designates AWS as the exclusive third-party cloud distributor for OpenAI's enterprise platform, "Frontier"—Morgan Stanley analysts raised their price target for Amazon stock to $300. While Amazon is investing an additional $50 billion into OpenAI, analysts believe this massive backlog of cloud commitments effectively de-risks AWS's growth narrative and validates its custom silicon as a strong alternative to Nvidia's hardware.
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