• Amazon.com (NasdaqGS:AMZN) is reportedly in advanced talks to invest up to US$50b in OpenAI.
• The potential deal would be part of a US$100b funding round that could make Amazon the largest single contributor.
• The move would deepen Amazon’s involvement in artificial intelligence and expand its role in OpenAI’s future direction.

For you as an investor, this points to Amazon pushing further into high end AI alongside its core e commerce, advertising and Amazon Web Services cloud businesses. The reported OpenAI commitment sits within a broader industry push to secure access to leading foundation models, specialised chips and AI infrastructure that can support enterprise workloads and new consumer experiences.

An investment of this size would likely shape how Amazon approaches AI partnerships, product roadmaps and capital allocation across AWS and its broader ecosystem. It also raises questions about how Big Tech alliances in AI may evolve, as cloud providers, model developers and enterprise customers reassess where they want to sit in the value chain.

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Why Amazon.com could be great value

Quick Assessment

• ✅ Price vs Analyst Target: Amazon trades at US$239.30 versus a US$296.29 analyst target, around 19% below consensus.
• ✅ Simply Wall St Valuation: Our model has Amazon trading about 41.8% below estimated fair value, flagged as undervalued.
• ✅ Recent Momentum: The stock has returned about 3.7% over the last 30 days.

Check out Simply Wall St’s
in depth valuation analysis for Amazon.com.

Key Considerations

• 📊 A US$50b commitment to OpenAI would signal that AI is moving even closer to the center of Amazon’s long term plan for AWS, advertising and e commerce.
• 📊 Watch how AI related capex, AWS AI services uptake and any changes in analyst forecasts line up with the current 33.4x P/E.
• ⚠️ The main flagged risk is a high level of non cash earnings, so track cash flow quality if Amazon ramps up AI related spending and investments.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete Amazon.com analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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