The mechanisms and free energetics underlying the formation of peptides from alpha-amino acids and alpha-amino acid N-carboxyanhydrides (NCAs) in bulk water at both ambient and extreme temperature and pressure conditions were investigated using accelerated ab initio molecular dynamics. In particular, peptide bond formation using an activated amino acid in form of its NCA, subsequent decarboxylation, as well as hydrolysis of the formed peptide were studied using glycine. It is shown to what extent thermodynamic conditions affect the reaction mechanisms qualitatively and the energetics quantitatively in solution. In particular, the zwitterionic intermediate in the peptidization step found in ambient water degenerates into a transient species in hot-pressurized water, whereas the hydrolysis reaction is found to follow qualitatively different pathways at ambient and extreme conditions. The work also quantifies the impact of extreme solvent conditions on both peptide bond formation and peptide hydrolysis in aqueous media. Beyond the specific case, the results provide important insights into how elevated temperatures and increased pressures affect organic reactions in aqueous solutions.