Amazon has room to run as it ramps up its compute capacity and deepens its ties with OpenAI, even as investors fret over eye-watering artificial intelligence investments, according to Citi Research. The bank raised its price target on Amazon to $285 per share from $265, implying about 27% upside from Tuesday’s close. It also reiterated its buy rating for the stock. “We are raising our AWS projections given continued AI demand and our analysis of revenue contributions from Anthropic, OpenAI, and core (non-AI) workloads,” analyst Ronald Josey said Wednesday in a note to clients. In late February, Amazon unveiled a strategic partnership with OpenAI that included a pledge to invest up to $50 billion in AI, deepening the connection between the Silicon Valley power player and the owner of ChatGPT. The deal makes Amazon Web Services the exclusive third-party cloud distributor for OpenAI Frontier, an enterprise platform for building, deploying and managing AI agents. The agreement marks…
Amazon’s OpenAI deal will drive AI revenue growth, stock upside, Citi says
