On Monday, Amazon announced a partnership that will allow OpenAI to use the company’s cloud computing services to run AI systems for products like the popular ChatGPT. OpenAI is paying $38 billion to access Amazon Web Services (AWS) servers and “hundreds of thousands of state-of-the-art NVIDIA GPUs.”

“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY,” Andy Jassy, the president and CEO of Amazon, said in the company’s earnings announcement. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity — adding more than 3.8 gigawatts in the past 12 months.”

Amazon Web Services (AMZN) plans to build a trans-Atlantic subsea fiber optic cable system to help address the rising demand for cloud computing and artificial intelligence.

Shares of Amazon ( AMZN +3.99%) jumped on Monday, finishing the day up 5%. The move higher came as the S&P 500 gained 0.1% and the Nasdaq Composite rose 0.4%. The tech behemoth inked a major deal to provide OpenAI with $38 billion worth of artificial intelligence (AI) computing capacity.

Partners with AWS to build fiber network connecting data centers for AI applications, expanding existing collaboration as AI demand grows.

Verizon announced a deal with Amazon Web Services on Monday to build high-capacity fiber routes connecting AWS data centers, aiming to strengthen infrastructure for the next generation of artificial intelligence applications.

Experts say the incident revealed what can happen when a such a broad spectrum of companies rely on singular cloud provider.