Amazon Plans Up to $50 Billion Investment in OpenAI, Strengthens AI Ties

While Amazon is reducing its workforce, the company is simultaneously planning a major expansion in artificial intelligence. Sources indicate that Amazon is in talks to invest as much as $50 billion in OpenAI while also deepening an existing partnership that provides computing power to the AI startup.

Expanding Access to OpenAI Technology

Sources familiar with the discussions say that aside from the $50 billion funding talks, OpenAI is also exploring a deal that would allow Amazon to integrate its AI models across the company’s products and platforms. Amazon employees could also gain internal access to the models. The talks are reportedly being handled directly by Amazon CEO Andy Jassy with OpenAI CEO Sam Altman.

Such a partnership would not only supply OpenAI with a substantial influx of capital but could also boost the company’s valuation to as high as $830 billion. If the deal goes through, Amazon could contribute up to 50% of the proposed $100 billion funding round. While the terms and participants are still being finalized, other companies, including Nvidia, are also considering joining. 

SoftBank Group Corp. is reported to be weighing an investment of up to $30 billion in OpenAI, according to sources familiar with the matter. The tech company is also engaging Middle Eastern investors and leading venture firms as Sam Altman participates in these discussions to help complete the full funding round.

Building on this financial support, OpenAI is looking ahead to a potential public listing in the fourth quarter of 2026 and has begun experimenting with advertising to offset rising costs from developing and operating advanced AI models.

Balancing Investments Between Competing AI Firms

Backing OpenAI with a large investment would further cement Amazon’s relationship with the AI firm, even as the company continues to support its competitor, Anthropic. Amazon holds a major stake in Anthropic, which was founded in 2021 by former OpenAI researchers, and has invested $8 billion in the company. The e-commerce giant also provided Anthropic with an $11 billion data center in Indiana and continues to supply cloud services to the firm.

By supporting both OpenAI and Anthropic, Amazon is keeping a foothold across the AI landscape, maintaining access to multiple technologies, including Anthropic’s Claude model, while exploring OpenAI’s offerings.

Job Cuts at Amazon Contrast with OpenAI’s Growth

Despite its investments and growth initiatives, Amazon is planning to cut around 16,000 corporate jobs. This follows a previous reduction of 14,000 positions last October, marking the second major workforce reduction in less than a year.

Meanwhile, OpenAI, founded in 2015, rose to widespread prominence in 2022 with the launch of its ChatGPT AI chatbot. Its valuation later climbed to $500 billion following a secondary share sale in October 2025.