TLDR
- Amazon stock jumps above $244 following reports of major OpenAI investment talks.
- Reports place Amazon in discussions to invest up to $50B in OpenAI funding.
- AMZN shares rise despite confirmation of 16,000 corporate job cuts.
- Layoffs impact AWS, Alexa, advertising, and delivery business units.
- Market focus shifts to AI strategy ahead of Amazon’s upcoming earnings release.
Amazon.com, Inc. (AMZN) stock climbed sharply following reports of high-level investment talks with OpenAI. At 11:27 AM EST, shares traded at $244.31, marking a 2.09% rise or $5.01 above the previous close. The gain followed a brief morning dip, with shares holding above early session levels near $239.30.
Amazon in Talks for Major OpenAI Investment
Amazon engaged in preliminary discussions to invest up to $50 billion in artificial intelligence firm OpenAI. According to a January 30, 2026, Reuters report. OpenAI seeks to raise $100 billion at a valuation of approximately $830 billion, ahead of a projected $1 trillion IPO.
Microsoft, Nvidia and Amazon have reportedly joined the investment round, with SoftBank considering up to $30 billion in backing. Amazon’s investment will exceed its previous AI-related commitments, signaling deeper involvement in generative AI development. While specifics remain undecided, the talks position Amazon to expand its influence in the AI market.
This development comes as OpenAI continues to attract top-tier funding for its technology platforms and global reach. Industry giants are competing for strategic stakes, anticipating strong future returns. Amazon’s participation may also strengthen synergies between its cloud platform AWS and OpenAI services.
Stock Surges Despite Massive Job Reductions
While AMZN surged on the OpenAI news, the company confirmed 16,000 job cuts on January 28, 2026. These layoffs are part of a broader plan that anticipates eliminating about 30,000 corporate roles since October 2025. This layoff affects over 10% of Amazon’s corporate workforce, impacting AWS, Alexa, advertising, and logistics divisions.
Amazon attributed the move to efforts aimed at reducing complexity and increasing efficiency across global operations. These reductions follow earlier store closures and cancelled projects, reflecting a deeper corporate restructuring. The company noted that more changes could follow as operational adjustments continue.
AMZN shares rebounded after dropping 2.1% on the day of the announcement. However, market response suggests stronger attention to forward-looking developments, especially regarding AI and cloud integration. Amazon will report earnings next week, which may further influence market direction.
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