Amazon Could Invest $10 Billion in OpenAI. Should You Invest in AMZN Stock First?

Core Insights - Amazon is reportedly in early discussions to invest approximately $10 billion in OpenAI, which could value OpenAI at over $500 billion, highlighting the strategic importance of AI in the tech industry [1] - The investment aligns with Amazon's previous commitment of at least $8 billion in OpenAI competitor Anthropic, indicating a strong interest in generative AI [2] - Amazon Web Services (AWS) has been developing its own AI chips, such as Inferentia and Trainium, to meet increasing demand for AI infrastructure [3] Investment and Market Position - The potential investment in OpenAI could redefine Amazon's competitive stance in the cloud market and enhance demand for its custom AI infrastructure [4] - Amazon operates a diverse range of businesses, including cloud services, digital streaming, and advertising, contributing to its market capitalization of $2.4 trillion [5] - Despite its strong market position, Amazon's stock has shown relatively muted performance, with a 1.82% increase over the past 52 weeks and a year-to-date return of 3.6%, underperforming compared to the S&P 500 Index [6]