Amazon has landed one of the biggest AI cloud deals to date, announcing a $38 billion agreement with OpenAI that will give the ChatGPT maker access to Amazon Web Services’ infrastructure. The deal marks a major win for Amazon’s cloud business and highlights OpenAI’s growing need for computing power as it scales its AI models.

The agreement is part of OpenAI’s broader push to expand its cloud footprint. While the company has long relied on Microsoft as its primary cloud provider, the move to Amazon reflects an effort to reduce dependency on one partner and signals a growing independence that could support a future initial public offering. Industry analysts suggest diversifying cloud partnerships demonstrates “operational maturity” and reinforces OpenAI’s readiness for public markets.

Amazon investors reacted positively to the news, with shares closing at a record high. Nvidia stock also gained after Microsoft secured U.S. government approval to export Nvidia chips to the United Arab Emirates.

However, while mega-cap tech stocks continued to lift Wall Street, the broader market showed signs of strain. Despite gains in the S&P 500 and Nasdaq Composite, more than 300 stocks in the S&P 500 finished lower — an indication of increasingly narrow market leadership driven by tech giants.

Market Highlights

• Starbucks forms China joint venture
  Starbucks will enter a joint venture with Boyu Capital to manage its China operations, with Boyu holding up to 60% and Starbucks retaining 40%.
• Saudi Aramco reports higher earnings
  The world’s largest oil company posted a 0.9% year-on-year rise in Q3 profit, despite Brent crude prices being over 12% lower this year.
• Palantir beats expectations
  Palantir forecast revenue of around $1.33 billion for the current quarter, ahead of analyst estimates, though shares dropped 4.3% in after-hours trading. CEO Alex Karp also took aim at critics during the earnings call.
• Mixed global market performance
  U.S. markets largely rose on tech strength. In Asia, stocks slipped, with South Korea’s Kospi falling more than 2%, ending a four-day winning streak.