Amazon stock surged about 5% Monday after announcing a $38 billion deal with OpenAI, giving the ChatGPT developer access to hundreds of thousands of Nvidia AI chips through Amazon Web Services.

OpenAI will run its AI workloads on Nvidia GPUs housed in Amazon’s cloud servers, scaling to the full capacity by the end of 2026.

This partnership is part of OpenAI’s broader strategy, which includes a $300 billion deal with Oracle and over $22 billion in agreements with CoreWeave.

OpenAI has also recently partnered with Broadcom, AMD, and Nvidia for AI infrastructure, Yahoo Finance has reported.

The move underscores the growing demand for cloud-based AI computing power.