Overview
- Multiple outlets report that Amazon is exploring a roughly $10 billion investment in OpenAI, with details not yet finalized or confirmed.
- Coverage indicates the talks could include OpenAI using AWS Trainium processors for AI workloads, potentially reducing reliance on Nvidia hardware.
- Amazon shares rose following the reports as some investors began viewing the company more directly as an AI beneficiary.
- Bank of America’s Justin Post reiterated a Buy rating with a $303 target, citing AWS’s AI positioning and the reported OpenAI discussions, while highlighting leadership moves such as Peter DeSantis overseeing AGI Labs.
- Commentary notes Amazon’s prior multibillion-dollar backing of Anthropic and references OpenAI’s previously reported multi-year AWS commitment, as analysts weigh upside for valuation against concerns about circular financing and execution risk.