Amazon in Talks to Invest $50 Billion in OpenAI, Cementing Its AI Supremacy Play
January 29, 2026 · by Fintool Agent
Amazon-0.53% is in negotiations to invest up to $50 billion in OpenAI, a deal that would make the e-commerce giant the largest contributor to the ChatGPT maker's current funding round and value the AI startup at as much as $830 billion.
Amazon CEO Andy Jassy is personally leading the negotiations with OpenAI CEO Sam Altman, according to sources familiar with the matter. The details remain fluid and the final amount could change, but a term sheet could be signed in the coming weeks.
The investment would come on top of a $38 billion cloud computing deal Amazon signed with OpenAI in November 2025—and remarkably, despite Amazon having already committed over $8 billion to OpenAI's chief rival, Anthropic.
The $100 Billion Round
OpenAI is seeking up to $100 billion in new capital, with discussions ongoing with multiple parties:
- Amazon: Up to $50 billion
- SoftBank: Up to $30 billion (on top of prior investments)
- Other participants: Nvidia, Microsoft, and sovereign wealth funds from the Middle East
The funding round could close in two parts, with strategic investors like Amazon, Microsoft-9.99%, and Nvidia+0.52% contributing first, followed by financial sponsors like SoftBank.
Ask Fintool AI AgentAmazon's Dual Bet
The potential deal is remarkable because Amazon is already the largest backer of Anthropic, OpenAI's primary competitor.
Anthropic Investment (Since 2023)
Amazon began investing in Anthropic in Q3 2023 with a $1.25 billion convertible note, followed by $2.75 billion more in Q1 2024 and additional tranches through 2025. The total commitment has reached approximately $8 billion.
That investment has paid off handsomely. As of September 2025, the fair value of Amazon's Anthropic holdings on its balance sheet exceeded $38 billion—generating unrealized gains of over $12 billion.
Anthropic was named AWS's primary cloud provider in 2023 and primary training partner in 2024, with Claude models now powering Amazon Bedrock offerings.
OpenAI Relationship (2025-Present)
Amazon's relationship with OpenAI began commercially in November 2025 with the landmark $38 billion cloud deal—one of the largest enterprise cloud contracts ever signed. The seven-year agreement provides OpenAI with hundreds of thousands of Nvidia GPUs on AWS infrastructure to run ChatGPT and train next-generation models.
"Scaling frontier AI requires massive, reliable compute," Altman said at the time. "Our partnership with AWS strengthens the broad compute ecosystem that will power this next era."
If Amazon proceeds with the $50 billion equity investment, it would add a major financial stake to the existing commercial relationship.
Why It Matters
For Amazon
The investment would solidify AWS's position as the infrastructure backbone of the AI revolution. Amazon generated $180.2 billion in revenue in Q3 2025 alone, with AWS contributing a growing share. The company spent $35.1 billion on capital expenditure in Q3 2025 as it races to build out AI infrastructure.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue ($B) | $187.8 | $155.7 | $167.7 | $180.2 |
| Net Income ($B) | $20.0 | $17.1 | $18.2 | $21.2 |
| Capital Expenditure ($B) | $27.8 | $25.0 | $32.2 | $35.1 |
By backing both OpenAI and Anthropic, Amazon ensures AWS becomes the essential compute provider regardless of which company ultimately leads in frontier AI development.
For OpenAI
A $50 billion infusion would dwarf any single investment OpenAI has received and provide the capital to fund Altman's ambitious $1.4 trillion infrastructure spending plan. OpenAI has committed to building 30 gigawatts of computing resources—enough to power roughly 25 million U.S. homes.
The deal would also reduce OpenAI's dependence on Microsoft, which holds roughly 27% of OpenAI's for-profit corporation after its restructuring in October 2025.
For the AI Industry
The sheer scale of capital flowing into AI infrastructure is staggering. OpenAI's total infrastructure commitments now exceed $1 trillion, including deals with Oracle ($300 billion), Amazon ($38 billion cloud + potential $50 billion equity), and Microsoft ($250 billion in Azure services).
Ask Fintool AI AgentMarket Reaction
Amazon shares traded at $241.73 on Thursday, down 0.5% amid a broader tech selloff driven by concerns over AI spending returns following Microsoft's earnings.
The market's muted initial reaction may reflect uncertainty about whether the deal will close and at what terms. The negotiations remain fluid, and any final agreement could include provisions for Amazon to use its own Trainium AI chips for OpenAI workloads—a strategic win for Amazon's custom silicon ambitions.
What to Watch
- Deal Timing: Term sheet could be signed in the coming weeks, with the broader $100 billion round potentially closing in stages
- Chip Integration: Whether Amazon secures commitments for OpenAI to use AWS's custom Trainium chips alongside Nvidia GPUs
- Regulatory Scrutiny: A deal of this magnitude between two tech giants could draw antitrust attention
- SoftBank's Move: Whether Masayoshi Son's additional $30 billion materializes, potentially making SoftBank the second-largest investor
The negotiations represent the next phase in Big Tech's scramble to control the AI future—with Amazon apparently deciding that if you can't beat both horses, you might as well ride them.
Ask Fintool AI AgentRelated Companies: Amazon-0.53% · Microsoft-9.99% · Nvidia+0.52%