Amazon Said to Be in Talks to Invest $10 Billion in OpenAI as BofA Reiterates Buy on AI Strategy

The reported financing would steer more AI work to AWS to showcase Amazon’s Trainium chips.

Overview

Jim Cramer said OpenAI is in talks to raise at least $10 billion from Amazon, with some funds potentially directed to Amazon’s AI chips.
Bank of America’s Justin Post reaffirmed a Buy rating on December 18 with a $303 price target, citing Amazon’s cloud and AI positioning and the reported discussions.
The prospective deal is framed as a way to deepen collaboration, expand AI workloads on AWS, and validate Trainium’s capabilities.
Post noted that OpenAI’s newest frontier models are unlikely to be hosted on AWS due to its agreement with Microsoft, though other partnerships could still benefit Amazon’s businesses.
Cramer flagged OpenAI’s stretched balance sheet, and neither Amazon nor OpenAI has confirmed any investment talks.