Amazon to Invest $50 Billion in OpenAI, Expands AI Partnership

Amazon.com, Inc. has announced a landmark $50 billion investment in OpenAI as part of the AI company’s record-breaking $110 billion funding round, the largest private financing in history. The deal, announced Friday, February 27, 2026, pairs a massive capital commitment with a multi-year strategic partnership that positions Amazon Web Services as the exclusive third-party cloud provider for OpenAI’s enterprise platform. For Amazon, the move represents its most aggressive and high-profile bet yet on the future of AI infrastructure and model development.

Inside the $50 Billion Investment Agreement

Amazon’s $50 billion investment will arrive in phases, an initial $15 billion commitment followed by the remaining $35 billion in the coming months once certain conditions are met. The round also includes $30 billion each from Nvidia and SoftBank, pushing OpenAI’s pre-money valuation to $730 billion, up sharply from $500 billion in a secondary financing last October.

The deal surpasses OpenAI’s own record-setting $40 billion raise from just a year prior, cementing it as the largest private financing round ever completed.

Beyond the capital, Amazon and OpenAI announced deep operational ties. The two companies will co-develop customized AI models to power Amazon’s customer-facing applications, while AWS becomes the exclusive cloud provider for OpenAI Frontier, the company’s enterprise platform for building and deploying AI agents.

OpenAI is also expanding its existing AWS agreement by $100 billion over eight years and will consume 2 gigawatts of compute capacity using Amazon’s in-house Trainium chips. Amazon CEO Andy Jassy called OpenAI “one of the very big winners” of the AI era, expressing strong confidence in the long-term partnership.

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AMZN Stock: Market Reaction and Key Metrics

AMZN shares showed only modest movement on the day of the news, trading at $208.21, up just +0.14% as of 10:35 AM EST on February 27, 2026. The muted reaction is consistent with reports that shares were initially lower following the announcement, as large capital commitments can raise near-term cost concerns.

Amazon’s market cap stood at approximately $2.218 trillion intraday, with a trailing P/E of 28.80 and EPS of $7.17.On a broader basis, AMZN has had a rough start to 2026, down 10.53% year-to-date versus the S&P 500′s near-flat +0.09% return.

Analyst sentiment remains constructive, however, with a consensus one-year price target of $280.47, representing meaningful upside from current levels. Wedbush holds an Outperform rating, and Wells Fargo maintained Overweight as recently as February 23, trimming its target only slightly to $304. Amazon’s next earnings date is estimated for April 30, 2026

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.