Amazon is in advanced talks to invest up to $50 billion in OpenAI, potentially forming half of the $100 billion funding round to deepen their AI partnership.
The deal could allow Amazon to use OpenAI’s AI models across its products and internal operations.
The development comes as Amazon reduced around 16,000 jobs globally.
E-commerce giant Amazon is in advanced discussions to invest as much as $50 billion in ChatGPT-maker OpenAI. The talks are focused on deepening the existing relationship between the two firms, including expanding an agreement under which Amazon supplies computing power to OpenAI.
If the negotiations proceed successfully, Amazon's contribution could make up around half of a new funding round for OpenAI that might total up to $100 billion, according to Bloomberg.
1 January 2026
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Under the proposed arrangement, OpenAI may also allow the e-commerce giant to use its advanced AI models within Amazon’s own products and services. This could mean that Amazon employees might be able to access and use those models in their work.
The new funding round aims to support OpenAI's rapid growth and high computing costs, which have driven the company to seek large investments from major tech firms and investors globally, including Nvidia and SoftBank, the report added.
A deal of this scale would further tighten ties between Amazon and OpenAI. Amazon has also been a supporter of other AI developers, including OpenAI’s rival Anthropic, highlighting how the company is positioning itself in the broader artificial intelligence landscape.
It was earlier reported by The Wall Street Journal that Amazon CEO Andy Jassy is directly leading the negotiations with OpenAI CEO Sam Altman. Bloomberg’s reporting notes that while the $50 billion figure is cited in the talks, the discussions are ongoing and details may change.
Meanwhile, this development comes at a time when Amazon is reducing a large chunk of its workforce. The company officially announced laying off 16,000 employees globally as part of its earlier plan to reduce layers of management, increase individual ownership and remove unnecessary bureaucracy across the organisation.
This latest round of cuts follows previous layoffs of about 14,000 corporate staff in October 2025, bringing total job reductions to roughly 30,000.
The company also said that it will support affected workers with severance pay, career transition services and, in the US, up to 90 days to look for internal roles before separation.
