According to a new report from Bloomberg, Andy Jassy is pushing Amazon through its biggest transformation since taking over from Jeff Bezos.

The goal is ambitious: AWS does not need to own the winning AI model. It wants every major model running inside Amazon’s ecosystem.

Amazon Is Spending $200 Billion on the AI Race

Amazon plans to spend around $200 billion this year, making one of the biggest AI investment pushes in corporate history.

The money is flowing into: AI data centers, Custom AI chips, Networking equipment, Warehouse robotics, Satellite programs, Cloud infrastructure expansion

This is not just a software strategy. It is a full-stack AI infrastructure play.

OpenAI and Anthropic Both Sit Inside the Plan

Amazon is betting on multiple winners. The company agreed to invest up to $50 billion into OpenAI, securing deeper use of Amazon infrastructure and chips.

At the same time, Amazon expanded its partnership with Anthropic:

• Existing investment: $13 billion
• Additional option: up to $20 billion more

Instead of choosing one model, Amazon is building an ecosystem where: OpenAI + Anthropic + Nova + Bedrock + Trainium can all operate through AWS.

The $25 Billion AI City Rising in Mississippi

One of the clearest examples of this strategy is already under construction. Amazon is building a $25 billion data-center cluster in Mississippi for Anthropic.

The site includes:

• Massive AI facilities
• Buildings costing roughly $1 billion each
• Thousands of workers
• Infrastructure designed specifically for AI acceleration and model training

The project highlights how AI spending is increasingly becoming an energy and construction story, not only a software story.

Jassy Is Rewriting Amazon’s Playbook

Since becoming CEO, Jassy has:

• Cut roughly 60,000 corporate roles
• Shut down multiple projects
• Restructured operations
• Increased focus on efficiency

But AI changed everything. Amazon moved from cost cutting to aggressive expansion, turning AWS into a platform that hosts many AI systems rather than forcing customers into one.

AWS Wants to Win Without Owning the Winner

This may be Amazon’s biggest shift. Unlike rivals trying to build the single best AI model, Amazon appears to be saying:

“We do not need to own the future model. We need the future model running on our infrastructure.”

That means:

• Amazon Web Services becomes the foundation
• AI companies become customers
• Amazon earns from chips, cloud, networking, and compute demand

Amazon is no longer acting like an e-commerce company. It is becoming: A cloud giant, A chip company, A robotics player, A satellite operator, And now, potentially, the backbone of AI infrastructure

The AI race is no longer just OpenAI vs Google vs Anthropic. Amazon is trying to become the platform underneath all of them.

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Amazon CEO Andy Jassy used his annual shareholder letter to send a clear message: the company is stepping deeper into AI, hardware, and infrastructure, and it’s ready to compete directly with industry leaders like Nvidia, Intel, and even Starlink.

The tone wasn’t aggressive on the surface, but the strategy underneath was unmistakable. Amazon is no longer just a customer of these technologies. It wants to replace them.

Amazon vs Nvidia: “A new shift has started”

Jassy acknowledged Amazon’s strong partnership with Nvidia, whose chips still dominate AI workloads today. But he made it clear that things are beginning to change.

Most AI systems have relied on Nvidia hardware so far, but Amazon is pushing its own chips as a cheaper and more efficient alternative.

Its Trainium AI chips are seeing explosive demand:

• Trainium2 is already sold out
• Trainium3 capacity is nearly fully booked
• Even Trainium4, which is still 18 months away, is already partially reserved

This momentum has pushed Amazon’s chip business to a $20 billion annual run rate, with Jassy suggesting it could be even larger if fully commercialized.

For now, Nvidia remains dominant, generating over $200 billion in annual revenue. But Amazon is positioning itself as a serious long-term challenger.

Pressure on Intel: Graviton gains ground

Amazon is also quietly taking share from Intel. Its Graviton CPUs, designed in-house, are now widely used across AWS. According to Jassy, 98% of the top 1,000 EC2 customers are already using Graviton chips.

Demand is so strong that some companies even asked to buy all available capacity for 2026, requests Amazon had to decline. That tells you one thing: customers are actively looking for alternatives to traditional chip providers.

A Starlink rival is already taking shape

Amazon is also entering the satellite internet race with its own project, Amazon Leo, expected to launch in mid-2026. And it’s not starting small.

Jassy revealed that Amazon has already secured major contracts with companies like Delta, AT&T, Vodafone, and even NASA. The company also has over 200 satellites already in orbit, signaling real progress before the official launch.

This puts Amazon in direct competition with SpaceX’s Starlink in a market that could define global connectivity.

AI spending is massive and intentional

At the center of everything is one key decision: Amazon is going all-in on AI infrastructure.

The company plans to spend around $200 billion in capital expenditures in 2026, mostly on AWS data centers and AI capacity. That’s one of the largest investment plans in tech history.

Jassy defended this aggressively, saying the company isn’t making a blind bet. He pointed to long-term agreements, including a deal where OpenAI plans to spend up to $100 billion on AWS. He also hinted that more large deals are already signed or in progress, even if they haven’t been publicly announced yet.

Beyond AI: robots, delivery, and groceries

While AI dominated the letter, Jassy also highlighted how Amazon is expanding across its broader ecosystem:

• Over 1 million robots are now operating in warehouses
• The company is investing $4 billion to expand rural delivery
• Its grocery business reached $150 billion in sales in 2025

He even suggested Amazon could eventually turn its robotics capabilities into standalone products, possibly selling automation solutions or even consumer robots in the future.

Amazon’s strategy is becoming clearer. Instead of relying on partners, it is building its own chips, its own infrastructure, and even its own satellite network. That means higher upfront costs, but also greater long-term control.

Jassy also addressed concerns about an AI bubble, acknowledging the debate but dismissing it for Amazon’s case. From his perspective, demand is real, growing, and already locked in through major customer agreements.

For investors, the message is simple: Amazon isn’t just participating in the AI boom. It’s trying to own as much of the stack as possible.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Major companies including Google, Amazon, Meta, and others are rolling out fresh rounds of layoffs, increasingly pointing to AI as the driving force behind workforce reductions.

Executives say the shift is simple: AI allows companies to do more with fewer people.

AI Replaces Old Layoff Narratives

In previous years, job cuts were blamed on: Over-hiring, Cost efficiency, Organizational restructuring

Now, AI has taken center stage. Meta CEO Mark Zuckerberg recently said 2026 will be the year AI transforms how work is done, as the company continues layoffs while ramping up AI investment.

Fewer People, Same Work

Some tech leaders are being more direct. Executives argue that:

• AI tools can handle coding, operations, and workflows
• Smaller teams can deliver the same output
• Productivity gains are accelerating

In some companies, up to 75% of code is now AI-generated, signaling a major shift in how tech work is done.

The Real Driver: Massive AI Spending

Behind the layoffs is another reality: cost. Big Tech is planning to spend up to $650 billion on AI infrastructure, creating pressure to cut expenses elsewhere.

• Amazon alone plans $200 billion in AI investment
• Companies are reducing payroll to free up capital
• Layoffs are being used to reassure investors

Experts say job cuts are also a way to show financial discipline during a period of heavy spending.

Is AI the Real Reason?

Not everyone is convinced. Some analysts argue:

• AI is partly a narrative shift to justify layoffs
• Cost-cutting and shareholder pressure remain key drivers
• Companies may be using AI as a more acceptable explanation

Still, there is growing evidence that AI is genuinely changing productivity levels, making certain roles less necessary.

What It Means for Workers

The impact is already clear:

• Roles like software developers and engineers are at risk
• Hiring freezes are spreading across tech firms
• More layoffs are expected in the coming months

Jobs once seen as stable are now facing long-term disruption.

AI is not just a new tool, it is reshaping how companies operate. Whether it is a real transformation or partly a convenient excuse, one thing is certain: Big Tech is entering a phase where fewer employees may be needed to build the future.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Meta and Google lost a major social media addiction lawsuit. Their troubles are far from over.

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The blockbuster round includes:

• $50B from Amazon
• $30B from SoftBank
• $30B from Nvidia

As part of the deal, Amazon will initially invest $15B, with an additional $35B tied to future conditions.

Strategic AI Partnerships Deepen

The agreement also expands OpenAI’s infrastructure footprint.

OpenAI will gain access to 2 gigawatts of computing capacity powered by Amazon’s Trainium chips, while AWS becomes the exclusive third party cloud provider for OpenAI Frontier, its enterprise AI platform.

Importantly, the move does not alter OpenAI’s existing ties with Microsoft. Azure will remain the exclusive cloud provider for OpenAI’s APIs, and Microsoft retains its IP licensing access across OpenAI models.

AI Investment Arms Race

The funding reflects intensifying competition among tech giants to align with OpenAI as the company ramps up spending on data centers and next generation AI infrastructure.

With Amazon, Nvidia, and SoftBank now deeply involved, the deal signals that the battle for AI dominance is entering a new phase.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Nvidia’s $100B OpenAI Deal Was Never a Promise, Jensen Huang Says

The post OpenAI Secures $110B Funding Round, Valuation Jumps to $840B first appeared on Finblog.

AI Spending Surges

Amazon is leading the charge, reserving roughly $200 billion for capital expenditures. Alphabet follows with up to $185 billion, while Meta has projected as much as $135 billion. Microsoft has also committed heavily to AI infrastructure and cloud expansion.

Analysts say investor patience may be tested.

“Investors right now are not forgiving about large investments without clear signal on return on invested capital,” Morgan Stanley analysts noted.

Cloud Growth Holds Up

Despite concerns, cloud revenue remains a bright spot.

• Google Cloud posted the fastest growth, up 48%, fueled by demand for its Gemini AI model.
• Microsoft Azure grew 39%.
• Amazon Web Services, the largest cloud provider, expanded 24%.

Strong AI integration across cloud platforms has helped maintain momentum, even as competition intensifies.

Profits Mixed as Costs Climb

The surge in spending is weighing unevenly on profits.

Amazon and Meta saw profit growth pressured by higher expenses tied to AI infrastructure. Meanwhile, Microsoft reported its strongest profit growth in two years, reflecting stronger cost control and enterprise demand.

Market Reaction

Investor optimism around Gemini and Alphabet’s deal to power Apple’s revamped Siri has boosted Alphabet’s stock, which has recently outperformed peers.

Still, with AI capex accelerating sharply, markets are watching closely for evidence that the massive outlays will translate into sustainable earnings growth rather than just bigger data centers.

For now, Big Tech is making it clear: the AI race is far from over.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Is It Too Late to Invest in Gold in 2026?

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According to The Wall Street Journal, Amazon’s potential investment would be the largest single contribution in OpenAI’s current fundraising round, which is seeking as much as $100 billion and could value the ChatGPT maker at around $830 billion.

The talks are being led directly by Amazon CEO Andy Jassy and OpenAI CEO Sam Altman, though sources said the final structure of the deal remains fluid. Japan’s SoftBank is also reportedly in discussions to invest up to $30 billion in the same round.

Amazon shares were down about 0.8% in afternoon trading, outperforming the broader tech sector, which was under pressure. Investors appeared to view the potential OpenAI stake as a long-term strategic move, reinforcing Amazon’s push into generative AI.

The company has already backed OpenAI rival Anthropic and continues to expand its AI infrastructure, even as it cuts costs elsewhere. Amazon recently announced plans to lay off roughly 16,000 corporate employees, following additional job cuts last year.

While not yet finalised, a $50 billion OpenAI investment would position Amazon as a central player in the next phase of the AI arms race, signalling just how high the stakes have become in the sector.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: What to Watch This Week in Markets: Fed Day, Big Tech “Show Me” Earnings

The post Amazon in talks to invest as much as $50B in OpenAI first appeared on Finblog.

The potential agreement would also involve OpenAI using Amazon’s custom AI chips, strengthening ties between the ChatGPT maker and Amazon Web Services as competition for AI infrastructure intensifies.

The talks come after OpenAI’s October restructuring, which gave the company more freedom to raise capital and partner beyond Microsoft. While Microsoft has invested more than $13 billion in OpenAI since 2019, it no longer has the right of first refusal as OpenAI’s sole compute provider.

Amazon has already poured at least $8 billion into Anthropic, one of OpenAI’s biggest rivals, but the new talks signal Amazon’s push to broaden its exposure to generative AI. Other tech giants are doing the same. Microsoft recently announced up to $5 billion in Anthropic investment, while Nvidia plans up to $10 billion.

AWS has been developing its own AI chips for years, including Inferentia and the latest Trainium processors, which are increasingly critical as demand for compute explodes.

OpenAI has also been locking in massive infrastructure capacity, committing over $1.4 trillion in recent months across partners such as Nvidia, AMD, and Broadcom. Last month, it signed a $38 billion deal with AWS for cloud capacity, its first major contract with Amazon.

In October, OpenAI completed a $6.6 billion secondary share sale, valuing the company at $500 billion, underscoring how aggressively investors are betting on the future of artificial intelligence.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Sam Altman says OpenAI isn’t trying to become ‘too big to fail’

The post OpenAI in Talks With Amazon Over Potential $10B+ Investment first appeared on Finblog.

The gap between public and private investing in the US is widening fast. The number of publicly listed companies has dropped by half since the late 1990s, while private deals are flourishing among the ultrawealthy. The result is a two-tier market: insiders gain early access to booming startups like SpaceX and Databricks, while the rest of the public gets slower-growing, already mature companies.

Even Securities and Exchange Commission (SEC) Chairman Paul Atkins warns this is becoming a threat to economic fairness. He’s pushing reforms to open private markets to more investors, arguing that ordinary Americans deserve access to early-stage growth. “Why should ordinary investors be closed off in so many ways?” Atkins asked in an interview.

For decades, IPOs were a symbol of opportunity. When Amazon went public in 1997, everyday investors could buy shares at $18, long before it became a trillion-dollar giant. But today’s startups, like Figure AI, which jumped from a $2.6 billion to $39 billion valuation in under two years, raise billions privately, often from names like Jeff Bezos or SoftBank, before retail investors ever get a chance.

Meanwhile, SpaceX now tops $800 billion in private valuation, with early insiders earning massive returns. Musk’s firm may eventually go public, but ordinary investors have already missed the biggest gains.

To access these private shares, investors must be “accredited”, meaning a net worth above $1 million or income over $200,000, and even then, only a select few are invited into these exclusive rounds. Others rely on special-purpose vehicles (SPVs) managed by firms like Valor Equity Partners or brokers such as UBS, often with layered fees and little transparency.

Critics say this opaque system is rife with risks and fraud. The SEC is investigating platforms like Linqto, which allegedly misled small investors into thinking they owned shares of companies like Ripple and SpaceX, when they didn’t.

Still, Wall Street sees opportunity. Charles Schwab, Morgan Stanley, and Nasdaq Private Market are all moving to expand access to private-company shares, positioning themselves for what Schwab CEO Rick Wurster called “a huge market.”

If Atkins succeeds, it won’t mean a seat next to Sam Altman or Elon Musk, but it could mean a safer, regulated path for smaller investors to join the private-market boom.

Until then, the reality remains: the rich get richer, one private deal at a time.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Oracle-Broadcom Double Blow Jolts AI Stocks

‘Architects of AI’ named Time Magazine’s Person of the Year

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The investment will give federal agencies access to advanced AI tools like SageMaker, Bedrock, Anthropic Claude, and Nvidia infrastructure, supporting faster data processing for missions in defense, cybersecurity, energy, and healthcare.

“This investment will fundamentally transform how federal agencies leverage supercomputing,” said AWS CEO Matt Garman.

Aligned with the Biden Administration’s AI Action Plan, the move strengthens America’s AI leadership and highlights AWS’s decade-long role in powering government innovation across more than 11,000 agencies.

The post Amazon to Invest $50 Billion in AI Supercomputing for US Government first appeared on Finblog.

Referenced article: Amazon Q3 2025 Earnings Preview and Prediction: What to Expect

From Forecasts to Facts

Why shares ripped: Results cleared a high bar and management leaned into capacity adds and AI demand translating to backlog/revenue—flipping the narrative from “capex fear” to “growth following spend.”

AWS: The AI Unlock Quarter

AWS posted +20% YoY to $33.0B, its fastest growth in ~3 years, with management tying the re-acceleration to AI workloads, capacity expansions, and custom silicon adoption. With AWS contributing roughly two-thirds of operating profit, the cloud arm re-assumed the role of profit engine.

Retail & Ads: Quietly Exceptional

• Retail: North America +11% YoY; International +14% (+10% ex-FX). Network efficiency, faster delivery, and grocery expansion kept volumes sturdy.
• Advertising: +24% YoY to $17.7B, driven by Prime Video ads and a resilient DSP—another quarter of double-digit outperformance.

Profit Quality: Charges Mask Core Strength

Operating income printed $17.4B, flat YoY, but would have been $21.7B without a $2.5B FTC settlement and $1.8B severance tied to planned role eliminations. Net income also reflected a $9.5B pre-tax gain from the Anthropic investment. Under the hood, the P&L was stronger than the headline.

Capex: Spend More, Grow Faster

Amazon lifted 2025 capex to ~$125B (from ~$118B) and indicated higher again in 2026, out-spending peers to meet compute demand (data centers, power, networking, chips). The market embraced the step-up because growth is following capacity (AWS +20%).

What Analysts Said After the Report

• Evercore ISI – Mark Mahaney (Outperform; PT $335): “AWS Unlock Quarter—20% Y/Y; backlog $200B; Trainium2 +150% q/q; Retail/OM up; Ads +22%.”
• Morgan Stanley – Brian Nowak (Overweight; PT $315): “Capacity doubling by ’27; October new business > entire Q3; Trainium3 coming; ’26/’27 EPS +5%/+6%.”
• Oppenheimer – Jason Helfstein (Outperform; PT $290): “AWS +20%—fastest in 11 quarters; added 3.8 GW; Project Rainier 23% online; EBIT > Street.”
• BofA – Justin Post (Buy; PT $303): “Capacity ramp underpins growth; re:Invent to showcase Trainium, Nova, new partners; raise PT on 2027 SOTP.”
• Canaccord – Maria Ripps (Buy; PT $300): “Backlog $200B; Trainium3 ~40% more cost-efficient by YE; ads +22% ex-FX.”
• Truist / Raymond James (Buy/Outperform; PT $290 / $275): “AWS cleared 20% early; ~500k Trainium2 chips now, 1M by YE—multi-billion AI Cloud ARR thesis intact.”
• Goldman Sachs – Eric Sheridan (Buy; PT $290): “Debates shift to consumer backdrop; long-term case: compounded revenue + margin expansion while investing.”

Overall Forecast Accuracy (Finblog Preview vs. Actuals)

Focus Area	Result
Clean headline beat on sales/EPS
AWS re-acceleration toward 20%	(printed 20%)
Advertising low-20s% growth	(24%)
Capex step-up and investor acceptance
Positive stock reaction post-print	(~10%)
Score	A (≈90%)

Key Takeaways

• Scale milestone: $180.2B sales; broad strength across AWS, Retail, and Ads.
• Cloud inflection: AWS +20% eases share/growth fears and validates the AI demand thesis.
• Quality of earnings: Core operating profit stronger than GAAP after one-offs.
• Capex with purpose: $125B in 2025, likely higher in 2026—and the market rewarded it as growth follows capacity.
• Holiday runway: Q4 guide $206–$213B sets a constructive tone into peak season.

Amazon Share Price Has Never Been Higher, Here’s Why It Still May Be Cheap

Amazon stock recently hit a new all-time high, marking a staggering long-term performance in which $1 invested at IPO in 1997 is now worth over $2,800. Despite the rally, some analysts argue the shares remain attractively priced given AWS’s dominance, the company’s massive scale, and its willingness to reinvest aggressively instead of paying dividends.

AWS alone contributed roughly two-thirds of Amazon’s $17.4B quarterly operating income, fueled by AI-related hosting demand. This surge in profitability explains why investors see Amazon’s long-term AI strategy as the foundation for continued compounding growth.

Even with uncertainties around tariffs and competitive pricing, many believe Amazon’s expanding moat—spanning cloud, retail, and advertising ecosystems, means the record-high stock could still be undervalued on a multi-year horizon.

In bottom

This was the AWS unlock quarter. Capacity, backlog, and custom silicon are now showing up in revenue and operating profit, while retail and ads keep compounding in the background. With a firm holiday guide and the will to out-invest rivals in AI infrastructure, Amazon just re-asserted leadership across all three pillars: AWS, Retail, and Ads.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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