The AWS partnership is OpenAI's first major cloud computing deal since it struck a new agreement with Microsoft, which gave it more flexibility.

“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.”

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

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.

Slack, Snapchat, Signal and Perplexity were some of the affected apps and websites, among a host of big names. AWS offers cloud servers that allow these services, and millions of other websites and platforms, to run. AWS is a cloud-computing platform that provides the infrastructure underpinning much of the internet.

OpenAI has signed a seven-year, $38 billion agreement with Amazon Web Services, adding another hyperscaler alongside Microsoft Azure for its growing AI compute needs.

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.

Amazon announced on Monday a seven-year deal to supply cloud computing capacity to the maker of ChatGPT. ・Retail investors and analysts say the deal is a major win for Amazon Cloud Services, which was previously seen as lagging behind its competitors.