Amazon is reportedly in early talks to invest up to $50 billion in OpenAI, a day after confirming layoffs of around 16,000 corporate employees. The investment could value OpenAI at $830 billion and deepen ties through AWS cloud services. The move highlights Amazon’s continued push into AI despite aggressive cost-cutting efforts.
Amazon is reportedly in talks to invest up to $50 billion in OpenAI, the company behind ChatGPT. The discussions come just a day after Amazon confirmed it would lay off approximately 16,000 corporate employees as part of broader cost-cutting and restructuring efforts.
Massive potential investment amid fundraising drive
The proposed investment would form a significant portion of OpenAI's ongoing fundraising round, which seeks up to $100 billion in new capital, Wall Street Journal reports. If finalised, this could value OpenAI at as much as $830 billion and position Amazon as one of its largest backers. Negotiations are reportedly being led by Amazon CEO Andy Jassy directly with OpenAI CEO Sam Altman.
The talks are still in early stages, and final figures or terms have not been locked in. They could change, sources indicated. The investment would also aim to expand existing ties, including OpenAI's use of Amazon Web Services (AWS) for cloud computing power. A previous deal announced in late 2025 saw OpenAI commit to purchasing **$38 billion** in AWS services over several years.
Layoffs announced
Amazon's job cuts, affecting around 16,000 roles globally, were confirmed just days ago. This follows an earlier round of roughly 14,000 layoffs in October, bringing the total reductions to about 30,000 corporate positions in recent months. The company described the moves as necessary to improve efficiency and focus resources, including on AI development and infrastructure.
Despite the workforce reductions, Amazon continues heavy investment in artificial intelligence, including prior funding in OpenAI rival Anthropic. The potential OpenAI deal reflects the company's strategy to strengthen its position in the rapidly growing AI sector, even as it trims costs elsewhere.
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