Amazon is navigating a pivotal moment as the company intensifies its focus on artificial intelligence (AI) amid significant corporate changes. This week, Amazon confirmed it is in advanced discussions for a potential investment of up to $50 billion in OpenAI, while simultaneously announcing plans to cut approximately 16,000 corporate roles. This marks the second major workforce reduction since October 2025, when around 14,000 positions were eliminated, totaling roughly 30,000 job cuts in less than a year.
In a statement from Amazon’s head of human resources, Beth Galetti, the layoffs are described as an effort to streamline the organization, aiming to reduce management layers and increase team accountability. These cuts represent about 10% of Amazon’s corporate and technology workforce of approximately 350,000 employees, while the company’s total global workforce remains around 1.58 million, with most employees engaged in logistics and fulfillment.
Amazon is implementing a transition plan for affected employees in the U.S., who will typically have 90 days to find another position within the company. Those unable to secure an internal role will receive severance packages, outplacement support, and continued health benefits.
Alongside the workforce reductions, Amazon is reportedly negotiating a significant investment in OpenAI, with discussions occurring directly between OpenAI‘s Sam Altman and Amazon’s Andy Jassy. Should the deal materialize, Amazon would emerge as the largest contributor in OpenAI’s current funding round, which aims to raise about $100 billion. Although details remain tentative, a term sheet could be signed in the coming weeks.
A notable component under discussion is a potential agreement that would see OpenAI utilize Amazon’s proprietary AI chips in exchange for the investment. This partnership would bolster Amazon’s ambitions in the AI infrastructure sector, marking a strategic shift given the company’s previous investments in Anthropic, a key competitor to OpenAI, which have totaled billions since 2023.
Despite ongoing job cuts, Amazon continues to plan for substantial capital expenditure, projecting around $125 billion for 2026, the highest forecast among major technology firms. This level of spending aligns with initiatives such as “Project Rainier,” an $11 billion data center project for Anthropic that commenced in Indiana in October 2025.
The market’s reaction to these dual announcements has been cautious. On Thursday, Amazon’s stock price dipped slightly, closing at $243.29, currently hovering around $241.00. The shares are trading about 2.6% below their 52-week high, indicating that investors may view this news as a strategic repositioning rather than a fundamental weakening of the company.
As Amazon prepares for its upcoming earnings report on February 5, 2026, market observers will be looking for insights into how the company is balancing cost-cutting measures with its aggressive investment in AI. This report may also shed light on the potential partnership with OpenAI, offering clarity on Amazon’s strategic direction as it competes in the evolving AI landscape.
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