OpenAI has reached a $38 billion agreement with Amazon that will allow the ChatGPT maker to run its artificial intelligence systems on Amazon’s U.S. data centers.

Under the deal announced Monday, OpenAI will use Amazon Web Services (AWS) to access “hundreds of thousands” of Nvidia AI chips, significantly increasing its computing power. Following the announcement, Amazon’s stock rose by 4%.

The partnership comes shortly after OpenAI adjusted its long-standing arrangement with Microsoft, which had previously been its exclusive cloud partner. Regulators in California and Delaware also recently approved OpenAI’s plan to restructure its business, making it easier for the company to raise funds and turn a profit.

Amazon said the surge in AI innovation has created unprecedented demand for computing resources. OpenAI will begin using AWS immediately, with full capacity expected by the end of 2026 and potential expansion into 2027 and beyond.

The company’s growing need for energy and computing power reflects its effort to support both new AI model development and existing products like ChatGPT, which serve hundreds of millions of users. OpenAI has already committed more than $1 trillion toward AI infrastructure, including partnerships with Oracle, SoftBank, and chipmakers such as Nvidia, AMD, and Broadcom.

Some investors have expressed concern about the sustainability of these massive deals, given OpenAI’s lack of profitability. However, CEO Sam Altman recently said that revenue growth remains strong and that the company is confident about future gains.

Amazon is also the main cloud provider for Anthropic, another leading AI startup known for its Claude chatbot.