Amazon Weighs $50 Billion OpenAI Investment Even as Thousands of Corporate Jobs Are Cut
Amazon trims thousands of jobs while preparing a massive AI bet, signalling how automation and artificial intelligence now drive corporate priorities.
Just days after announcing one of its largest workforce reductions in recent years, Amazon is reportedly preparing to make one of the boldest investments in artificial intelligence.
The tech giant is in discussions to invest up to $50 billion in OpenAI, the company behind ChatGPT, according to people familiar with the matter. The potential deal underscores a sharp contrast in Amazon’s current strategy: cutting thousands of corporate roles while aggressively expanding its AI footprint.
On Wednesday, Amazon confirmed it would eliminate around 16,000 corporate positions, adding to roughly 14,000 layoffs in October. While the job cuts are aimed at reducing costs and streamlining operations, the company is simultaneously ramping up spending in areas it believes will shape the future — most notably artificial intelligence.
People aware of the talks say Amazon CEO Andy Jassy is personally leading the conversations with OpenAI CEO Sam Altman. The structure and size of the deal are still being negotiated, and terms could change. However, if the investment reaches the upper range, Amazon could emerge as the largest backer in OpenAI’s upcoming fundraising round.
OpenAI itself is chasing a historic capital raise. The Wall Street Journal reported that the company is seeking as much as $100 billion in fresh funding, which could value it at up to $830 billion. Other investors are also circling. SoftBank is said to be considering an investment of up to $30 billion, while sovereign wealth funds from the Middle East and several global venture capital firms are in discussions. Existing backers include Thrive Capital, Khosla Ventures and UAE-linked MGX.
A deeper financial partnership would build on Amazon’s growing relationship with OpenAI. Although Microsoft has long been OpenAI’s primary cloud partner, the startup signed a significant agreement with Amazon Web Services in November to purchase $38 billion worth of cloud services over several years. A direct investment would extend that relationship beyond infrastructure into long-term strategic alignment.
At the same time, Amazon is hedging its bets. The company has also backed Anthropic, one of OpenAI’s chief rivals. By late 2024, Amazon had invested about $8 billion in the startup and built an $11 billion data centre campus in Indiana to support its computing needs.
Inside Amazon, AI tools are increasingly embedded across operations, from customer services to internal automation. Leadership sees AI as critical to boosting efficiency and driving new growth, even if it means reducing headcount in traditional roles.
For OpenAI, the need for capital is clear. Training advanced AI systems requires enormous computing resources and fierce competition for top research talent. To help fund expansion, the company has announced plans to introduce advertising, creating a new revenue stream beyond subscriptions.
Together, these moves highlight a broader shift across the tech industry: fewer traditional jobs, bigger AI investments, and a future where automation plays a central role in corporate decision-making.
