New York, Jan 29, 2026, 16:16 EST — Trading after hours.
- Amazon.com shares ended Thursday down 0.5%, settling at $241.74.
- Reports indicate Amazon is negotiating a multibillion-dollar investment in OpenAI, which could deepen its connection to the creator of ChatGPT.
- Investors are digesting Amazon’s plan to cut 16,000 corporate jobs before its Feb. 5 earnings call.
Shares of Amazon.com, Inc. slipped 0.5% to end Thursday at $241.74, amid reports that the company is negotiating a new investment stake in OpenAI.
This matters because OpenAI is a major consumer of computing resources, and cloud providers are eager for that business. For Amazon, strengthening ties could boost its Amazon Web Services division and reposition its AI efforts alongside those of Microsoft and Google.
The timing is delicate. Amazon is slashing jobs and scaling back retail experiments, while investors demand tighter cost control amid ongoing investments in data centers and chips.
Nvidia, Amazon, and Microsoft are reportedly negotiating a combined investment of up to $60 billion in OpenAI, according to The Information. Reuters added that Amazon, as a potential new backer, could contribute over $10 billion, possibly exceeding $20 billion. OpenAI is said to be close to finalizing term sheets, outlining proposed deal conditions. Any Amazon commitment might depend on separate discussions, including expanding OpenAI’s cloud server rental agreement with Amazon and a commercial deal for selling products like enterprise ChatGPT subscriptions.
The Wall Street Journal reported that Amazon is in talks to invest as much as $50 billion while OpenAI aims to raise up to $100 billion, valuing itself around $830 billion. According to the Journal, Amazon CEO Andy Jassy is spearheading discussions with OpenAI CEO Sam Altman. Neither Amazon nor OpenAI has publicly responded to the report.
Amazon confirmed on Wednesday it is cutting 16,000 corporate jobs, pushing total layoffs since October to around 30,000. The company signaled more cuts could follow. These job losses represent roughly 10% of its corporate workforce. Executives also announced the closure of all remaining Amazon Fresh grocery stores and Go markets, alongside the end of Amazon One, the palm-scanning payment system. “Reducing layers, increasing ownership, and removing bureaucracy” was the objective, said HR chief Beth Galetti. She added, “That’s not our plan” when addressing concerns about ongoing, widespread layoffs. Reuters
The rollout of job cuts hit a snag. An internal email from Colleen Aubrey, a senior vice president at AWS, mistakenly implied some employees had already been informed about layoffs and labeled the plan “Project Dawn,” Reuters reported. Aubrey acknowledged, “Changes like this are hard on everyone,” adding that decisions were made “thoughtfully” as Amazon preps AWS “for future success.” Reuters
Thursday saw Amazon’s shares swing from a low of $236.77 to a high of $243.08, as roughly 44.6 million shares were exchanged.
There’s a downside risk. The OpenAI talks might stall, deal terms could change, or any agreement might come with strings attached — think cloud commitments, product resale rights, and a hefty price tag — making it tough for investors to value. Plus, a payout this large would raise fresh questions about whether Amazon can convert AI spending into lasting profits instead of just boosting expenses.
Amazon will report its fourth-quarter 2025 results on Feb. 5 at 5:00 p.m. ET. Investors will be watching closely for updates on AWS demand, capital expenditures, and the real impact of the ongoing restructuring on savings.
