Amazon.com, Inc. shares have experienced a notable increase in premarket trading on December 17, 2025, following reports of ongoing discussions regarding a potential investment from OpenAI exceeding $10 billion. This potential deal also involves OpenAI utilizing Amazon”s artificial intelligence chips, representing a significant enhancement of their collaboration, which follows a $38 billion cloud services agreement established just last month.
This latest development highlights Amazon”s expanding role in the AI infrastructure market. OpenAI, keen to broaden its partnerships after an October restructuring that granted it more autonomy to raise capital beyond Microsoft, is considering this deal as a strategic move.
Sources familiar with the matter indicate that the proposed investment could position OpenAI at a valuation exceeding $500 billion, showcasing the rapid escalation in AI market valuations. Furthermore, the agreement would facilitate OpenAI”s use of Amazon Web Services” Trainium chips, which directly compete with Nvidia”s leading AI processors. Amazon has been developing its own AI chips since around 2015, launching the Inferentia line in 2018 and introducing the latest Trainium chips earlier this month.
This potential partnership comes in the wake of OpenAI”s transformation into a public benefit corporation, a shift that allows the company greater flexibility in capital raising and collaboration across the diverse AI landscape. Notably, Microsoft, having invested over $13 billion in OpenAI since 2019, no longer maintains exclusive rights as OpenAI”s compute provider, opening the door for Amazon to step in.
Amazon has already made significant investments in the AI sector, including commitments of at least $8 billion toward its competitor Anthropic. This new initiative signals Amazon”s intent to enhance its presence in the rapidly growing generative AI market.
As of December 16, 2025, Amazon”s stock closed at $222.56, reflecting a slight increase of 0.01%. However, in premarket trading on December 17, shares surged to $225.94, indicating a 1.52% gain. This rise reflects investor optimism regarding Amazon”s strengthened ties with OpenAI and the potential revenue opportunities from AI chip sales.
Year-to-date, Amazon”s stock has seen a modest increase of 1.44%, which is significantly lower than the S&P 500″s 15.62% return. Over the past year, the stock has declined by 4.45%, contrasting with the broader market”s gain of 11.96%. Given this recent underperformance, the news surrounding OpenAI is particularly encouraging for shareholders seeking catalysts for growth.
Amazon currently holds a market capitalization of $2.38 trillion and has a trailing price-to-earnings ratio of 31.44. The company has been making substantial commitments to infrastructure, having signed over $1.4 trillion in agreements with chip manufacturers, including Nvidia, AMD, and Broadcom.
Analysts generally maintain a positive outlook for Amazon, with BMO Capital recently increasing its price target from $300 to $304 while keeping an Outperform rating as of December 16. The consensus analyst price target stands at $295.60, indicating significant potential for growth from current levels as Amazon positions itself as a key player in the AI revolution.
In conclusion, the prospective investment from OpenAI not only strengthens the relationship between these two tech giants but also signifies a pivotal moment for Amazon as it seeks to capitalize on the burgeoning AI market.
