Amazon’s Strategic Pivot: A Potential $10 Billion OpenAI Stake

According to a report from The Information, Amazon is in discussions to make a substantial investment of at least $10 billion into OpenAI. Such a move would represent a significant strategic shift for the e-commerce behemoth, which has until now primarily anchored its artificial intelligence ambitions in its partnership with Anthropic. A deal of this magnitude would see the tech giant taking a major position in the developer behind ChatGPT.

Despite lagging in the year-to-date performance race, Amazon's shares are attracting renewed analyst interest. The stock's approximate 7% gain since the start of the year trails the broader S&P 500 index, which has advanced 18%, and places it as an underperformer even within the elite "Magnificent Seven" group.

However, fundamental business metrics tell a stronger story. In the third quarter of 2025, growth at Amazon Web Services (AWS) re-accelerated to 20%, alleviating prior concerns about market share erosion to rivals Microsoft Azure and Google Cloud. This operational strength is feeding into positive sentiment among research firms. Zacks Investment Research now identifies Amazon's equity as the most promising bet among tech giants, citing upward earnings revisions and improved returns on capital. Similarly, Evercore ISI has named Amazon its "top internet stock for 2026," anticipating a period of catching up.

This potential OpenAI investment underscores the aggressive pace of Amazon's AI offensive. The company has already earmarked roughly $125 billion in capital expenditures for 2025, primarily directed toward AI infrastructure. CEO Andy Jassy has been clear that Amazon intends to be a frontrunner, not a follower, in the artificial intelligence race.

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Concurrently, the company is sharpening its strategic focus in other areas. Following a review, Amazon has halted plans for commercial drone deliveries in Italy, choosing to concentrate resources on markets with faster potential returns. This decision highlights Jassy's overarching emphasis on cost efficiency and capital discipline.

Outlook and Technical Perspective

Wall Street maintains a constructive view. The consensus price target for Amazon shares stands near $296, implying an upside potential of more than 27%. Analysts at J.P. Morgan are even more bullish, setting a $305 target. They project that the massive investments planned for 2025 will begin to translate into noticeable margin expansion in subsequent quarters.

From a chart perspective, the stock is maintaining support above the $230 level. A sustained breakout above its 52-week high of $258.60 would be viewed by technical analysts as confirmation of a new upward trend.

The coming months are poised to be pivotal. While an official confirmation regarding the OpenAI talks is still pending, the market expects clarity when Amazon releases its Q4 earnings report at the end of January. This update will likely provide an opportunity for management to comment on the potential OpenAI stake and, more broadly, on the path to monetizing its sweeping AI investments.