"Why Did Amazon's Stock Value Surge? Here Are the Reasons"

Why is Amazon Rising?

Recently, Amazon's (AMZN) value has increased significantly among technology stocks. One of the key reasons behind this rise is the agreement made with OpenAI. The contract, in which OpenAI purchased $38 billion worth of computing capacity via Amazon Web Services (AWS), has caused a big stir in the industry.

OpenAI and the AWS Agreement

According to the announcement made on Monday, OpenAI will begin to rapidly route its workloads using the AWS infrastructure. This development means that OpenAI is no longer dependent on Microsoft, attracting investors' attention and increasing demand for Amazon shares. Following the announcement, Amazon's shares gained approximately 5% in value.

High Capacity and Future Plans

OpenAI will initially use existing AWS data centers and plans to build additional infrastructure for Amazon in the future. Dave Brown, vice president responsible for AWS's computing and machine learning services, noted that these new capacities are specifically for OpenAI. At the same time, the announcement that OpenAI signed expansion agreements totaling $1.4 trillion with Nvidia, Broadcom, Oracle, and Google further strengthens its impact in the AI sector.

Relations with Microsoft

Previously, OpenAI had a special cloud agreement with Microsoft in 2019 with a total investment of $13 billion. However, in January, Microsoft lost its title as the only cloud provider for OpenAI, which increased the chances for OpenAI to form partnerships with other cloud services. OpenAI CEO Sam Altman stated that their partnerships with AWS require "large and reliable computing power for groundbreaking artificial intelligence."

In conclusion, this increase in Amazon’s share value may not only be a short-term fluctuation but could also indicate a long-term trend shaped by the strengthening of strategic partnerships in the fields of artificial intelligence and cloud computing.