Shares of Amazon.com, Inc. (NASDAQ:AMZN) are trading higher Wednesday. Reports indicate the company is in talks to invest $10 billion into OpenAI.
- Amazon.com shares are showing limited movement. What’s next for AMZN stock?
What To Know: Amazon is in “fluid talks” to invest $10 billion into OpenAI in a round that would value the company behind ChatGPT at more than $500 billion, according to Reuters. The move would reportedly give OpenAI access to Amazon’s Trainium chips.
Both Oracle and Nvidia have inked significant deals with OpenAI this year. The company is also no stranger to Amazon — the two just closed on a $38 billion cloud services deal last month. Cloud services are just one part of the infrastructure needed for artificial intelligence. The race for computing chips and data centers is also heating up.
However, there’s growing speculation that the pay-off for the billions invested into artificial intelligence may be further out than expected. Reuters also reported Wednesday that Blue Owl Capital will not be funding a $10 billion, Oracle-operated data center in Michigan. The data center was intended for OpenAI.
The convergence of news has resulted in a rise in Amazon stock on Wednesday, suggesting investors view the news flow as a whole as positive. In October, Amazon CEO Andy Jassy shed some light on the company’s recent performance.
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Jassy. “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months.”
AMZN Price Action: Amazon shares were up 0.37%, trading at $223.39 at the time of publication, according to Benzinga Pro.
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