Amazon's AI Bet: Trainium Chips & OpenAI Funding

0:00Amazon shifted from online retail giant to AI Powerhouse with AWS leading the charge thanks to its custom training ships built with Marvel. Those accelerators are key to handling the AI boom, making cloud services the real moneymaker now. After dropping its fourth quarter earnings on February 5, the stock fell 5% the next day. Investors shrugged off solid numbers and Bank of America even cut its price target at first. But Amazon's looking ahead to first quarter 2026 sales between 173.5 billion and 178.5 billion dollars with operating income from 16.5 billion to 21.5 billion. Meanwhile, reactions from the streets show mixed vibes, folks worry about heavy AI spending squeezing margins, but core AWS growth stays strong. Layoffs in January helped trim costs and everyday users are buzzing about easier cloud migrations like the new window server licensing in Amazon, elastic VMware service.

1:02Fast forward, Amazon's doubling down on AI bets, it jumped into open AI's funding with up to $50 billion starting at $15 billion tied to, milestones or an IPO, plus a 4 billion expansion with anthropic means up to 25 billion total locking in over 100 billion in AWS, spend over 10 years on training them tech analysts at Bank of America flipped bullish ahead of April 29th earnings, hiking their target to $298 with a buy rating. They see AWS growing 28% beating consensus even with risks like cloud rivals and retail competition keeps the stock volatile, but the AI trains rolling strong local news powered by AI. This is Durham news today. I'm Corey with the story.