Amazon.com Inc. (NASDAQ:AMZN) is gaining attention among investors, bolstered by a recent partnership with OpenAI. This collaboration is part of Amazon”s strategy to extend its leadership in artificial intelligence. Currently deemed a consensus Buy, analysts project nearly 20% upside potential for the stock, despite subdued year-to-date returns.
Recent events have reignited interest in Amazon”s stock. The company”s Q3 results highlighted strong performance, particularly in its cloud computing sector. Additionally, on November 3, Amazon announced a significant seven-year agreement worth $38 billion with OpenAI, as reported by Bloomberg. This deal allows Amazon Web Services (AWS) to provide OpenAI with access to a substantial number of Nvidia graphics processing units (GPUs).
Prior to this agreement, Amazon had not offered any services to OpenAI, setting it apart from other major cloud providers. In discussing the partnership, Matt Garman, CEO of AWS, remarked, “As OpenAI continues to push the boundaries of what”s possible, AWS”s best-in-class infrastructure will serve as a backbone for their AI ambitions.”
OpenAI CEO Sam Altman echoed this sentiment, stating, “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”
Amazon.com Inc. operates in various sectors, including e-commerce, digital content, advertising, and cloud computing. Its extensive online and offline stores offer a mix of in-house and third-party products, while AWS manages one of the largest data center networks globally.
While there is recognition of the risks associated with investing in AMZN, some investors believe other AI stocks may provide better returns in a shorter timeframe. For those seeking alternatives, a report on a promising AI stock with significant upside potential is available.
As Amazon continues to forge its path in the AI landscape, the implications of this partnership with OpenAI could redefine its competitive edge in the tech industry.
See also
Needham & Company Lowers Absci Price Target to $7.00 Amid Analyst Ratings Shift
Eli Lilly CEO Utilizes AI to Enhance Meeting Efficiency
Meta”s CMO Defends AI Spending Amid Concerns of a Bubble
Massachusetts Financial Services Reduces Salesforce Stake by Nearly 33 Percent
Good Life Advisors LLC Acquires Stake in Snowflake Inc. During Q2
