Mon Nov 03 15:20:00 UTC 2025: Here’s a news article summarizing and rewriting the provided text:

Amazon Stock Soars on $38 Billion OpenAI AI Chip Deal, Sparking Bubble Concerns

SEATTLE, WA – Amazon (AMZN) stock jumped nearly 5% Monday following the announcement of a $38 billion agreement with OpenAI, the creator of ChatGPT. The deal grants OpenAI access to hundreds of thousands of Nvidia (NVDA) AI chips through Amazon Web Services (AWS), its cloud computing arm.

Under the partnership, OpenAI will leverage Nvidia’s GPUs, housed within Amazon’s AI servers, to run its demanding AI workloads. OpenAI is expected to begin utilizing the AWS infrastructure immediately, scaling up to full capacity by the end of 2026.

This latest agreement adds to OpenAI’s growing list of cloud and chip provider partnerships, including a $300 billion deal with Oracle (ORCL) and over $22 billion in agreements with CoreWeave (CRWV), as well as recent deals with Broadcom (AVGO), AMD (AMD), and Nvidia.

However, the flurry of AI infrastructure deals is raising concerns about a potential market bubble. Some analysts worry that the true demand for AI may be overstated, especially as OpenAI’s projected costs are expected to exceed $1 trillion by the end of the decade, dwarfing its current revenue. This raises questions about OpenAI’s ability to finance its massive AI infrastructure commitments.

The news comes on the heels of OpenAI’s recent agreement with Microsoft (MSFT) to transition into a for-profit public benefit corporation, fueling speculation about an upcoming IPO potentially valuing the company at $1 trillion, according to Reuters.

Meanwhile, Amazon recently reported strong third-quarter earnings, driving its stock to an all-time high. AWS also announced last week the completion of a massive AI data center project and a separate commitment to provide OpenAI’s rival, Anthropic, with one million of its custom AI chips by the end of 2025.

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