After Amazon Web Services (AMZN) and OpenAI announced a multi-year strategic partnership under which OpenAI will run and scale its core AI workloads on AWS infrastructure, Evercore ISI analyst Mark Mahaney reiterates an Outperform rating and $335 price target on shares of the analyst’s number one “Large Cap ‘Net Long” stock. AWS will supply Amazon EC2 UltraServers built around hundreds of thousands of Nvidia (NVDA) GPUs, with the ability to scale to tens of millions of CPUs, notes the analyst. The agreement represents a $38B commitment over seven years, with most capacity targeted to be in place by the end of 2026 and room to expand into 2027 and beyond, adds the firm, which sees “material upside” for Amazon.
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