Amazon Stock Lower After Announcing $50 Billion OpenAI Investment, Partnership

Amazon will invest $50 billion in ChatGPT creator OpenAI as part of a strategic partnership between the tech giant and AI startup. Amazon stock was slightly lower in early trading following the announcement of the deal.

Through the partnership, the company’s Amazon Web Services cloud business will be the exclusive third-party cloud distribution provider for OpenAI Frontier, which is focused on developing and deploying AI agents. OpenAI will also consume 2 gigawatts of capacity for Amazon’s custom Trainium AI chips, according to a press release from Amazon.

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“We have lots of developers and companies eager to run services powered by OpenAI models on AWS, and our unique collaboration with OpenAI to provide stateful runtime environments will change what’s possible for customers building AI apps and agents,” Amazon Chief Executive Andy Jassy said in a news release. "We continue to be impressed with what OpenAI is building, and we’re excited not only about their choosing to go big on our custom AI silicon (Trainium), but also our opportunity to invest in the company and partnership over the long-term.

The announcement confirms previous reports that Amazon would be part of a larger investment round for OpenAI, which is the world’s most valuable startup. The total deal is for $110 billion, which includes $30 billion Nvidia and $30 billion from Softbank, according to a separate blog post from OpenAI.

Meanwhile, Amazon stock fell a fraction to 207.30 premarket on the stock market today.

_This is a breaking news story and will be updated. _

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