MRKT Matrix Amazon, OpenAI Deal Lifts S&P 500 Higher
Nov 3, 2025
The market kicks off November on a high note, buoyed by Amazon and major AI developments. OpenAI locks in a massive $38 billion deal with Amazon, reducing its dependency on Microsoft. Meanwhile, Microsoft secures a $9.7 billion partnership with iREN to boost its cloud footprint. Concerns linger about an AI investment bubble, with voices cautioning against unregulated growth amplifying societal issues. Lastly, Kimberly-Clark's acquisition of Kenvue signals a strategic push within consumer staples amidst a divided economic landscape.
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Narrow Breadth Behind Big Index Gains
- AI deal announcements concentrated gains in a few tech giants while most sectors lagged behind.
- Narrow market breadth masked strong S&P 500 performance led by Amazon, Micron, and NVIDIA.
OpenAI Locks Massive AWS Capacity
- OpenAI signed a $38 billion seven-year deal with AWS to secure immediate cloud and NVIDIA chip access.
- The pact reduces OpenAI's reliance on Microsoft while locking in huge computing capacity.
Microsoft Secures Data Center Capacity
- Microsoft struck a $9.7 billion deal with iREN to build NVIDIA-powered systems and expand cloud capacity.
- The agreement generates near-term revenue and cements Microsoft as iREN's largest customer.