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Amazon completes $50 billion OpenAI investment, builds about 5% stake
The payment follows a Microsoft OpenAI deal revision on April 27 that ended exclusivity limiting rival cloud providers.
Amazon has completed its full $50 billion investment in OpenAI and built a roughly 5% stake, with the Financial Times reporting the news on July 31. The investment became possible after Microsoft revised its OpenAI agreement on April 27 and ended exclusivity that had constrained rival cloud providers.
Amazon’s structure shifted from conditional to equity risk after it committed $15 billion upfront and $35 billion after specified conditions were met. Paying the entire amount before an OpenAI initial public offering turns the earlier commitment into a realized private equity position.
The partnership also reshaped commercial and cloud arrangements. AWS was made the exclusive third party cloud distributor for OpenAI Frontier, OpenAI agreed to consume about 2 gigawatts of Trainium capacity, and an existing $38 billion AWS agreement was expanded by $100 billion over eight years.
The deal comes as Amazon faces heavy cash demands. According to the source, Amazon raised planned 2026 capital spending to $220 billion, while trailing free cash flow swung to a $7.6 billion outflow, and AWS revenue rose 37% to $42.2 billion with total operating income up 43% to $27.5 billion in Q2 2026, according to Amazon’s reported results.