Bank of America Stays Bullish as Reports Link Amazon to $10 Billion OpenAI Deal

Overview

• Market commentators report that Amazon is in talks to invest at least $10 billion in OpenAI, with some funds potentially directed to Amazon’s AI chips, though neither company has confirmed the discussions.
• Bank of America’s Justin Post reiterated a Buy rating on Amazon with a $303 price target on December 18, citing AWS’s AI positioning and the potential OpenAI tie-up.
• Post highlighted AWS’s Trainium chips and recent leadership changes, including Peter DeSantis taking oversight of AGI Labs to accelerate internal models and customer silicon development.
• The analyst said OpenAI’s frontier models likely remain on Microsoft infrastructure but argued that advertising, e‑commerce, and enterprise AI partnerships could still benefit Amazon’s ecosystem.
• Jim Cramer expressed skepticism about Amazon effectively funding OpenAI to use Amazon chips and flagged concerns over OpenAI’s balance sheet, while also referencing a reported earlier multi‑year OpenAI commitment to run workloads on AWS.