Shares of Amazon.com Inc. traded lower during Thursday's morning session, shedding 1.4% to reach $207.81. The stock opened at $210.63 and fluctuated between $206.96 and $211.04 throughout the early trading period. This movement follows Wednesday's closing price of $210.67, as investors assessed significant corporate developments.
The decline coincided with market reports suggesting Amazon is considering a substantial strategic investment in artificial intelligence firm OpenAI. According to these reports, the potential deal could reach $50 billion in total value. The structure reportedly involves an initial $15 billion payment, with an additional $35 billion contingent upon OpenAI reaching specific milestones. These milestones may include the company conducting an initial public offering or achieving what is termed "artificial general intelligence"—a level of AI capability that matches or exceeds human performance across a wide range of cognitive tasks.
This potential investment underscores the intense focus Amazon and other technology giants are placing on artificial intelligence. Earlier this month, Amazon outlined capital expenditure plans approaching $200 billion for 2026, with the vast majority allocated to building AI infrastructure. Market participants have been closely monitoring this significant outlay, weighing the long-term strategic benefits against potential impacts on near-term cash flow and profitability.
Bank of America analyst Justin Post maintained a Buy rating on Amazon shares this Wednesday, with a price target of $275. Post highlighted expanding cloud capacity and improved artificial intelligence deal flow as potential catalysts for positive sentiment toward Amazon Web Services (AWS). He noted the company's recent update that AWS added 3.9 gigawatts of capacity in 2025 alone, with plans to double capacity again by 2027. However, the analyst also cautioned that an industry-wide increase in capital expenditures could drive construction costs higher across the sector.
In related corporate news, Amazon Web Services announced it will commit up to $100 million in credits and technical expertise through 2029 as part of its Education Equity Initiative. This program aims to support organizations developing digital learning tools powered by cloud and AI technologies. Code.org's Chief Product Officer, Karim Meghji, cited the impact of an AI teaching assistant developed with AWS support, which reportedly reduced the time educators spend grading coding projects by as much as 50%.
On the regulatory and legal front, Amazon faces several challenges. California Attorney General Rob Bonta is seeking a court order to halt what he describes as Amazon's practices preventing merchants from listing lower prices on other platforms, and has requested the appointment of a court monitor. Amazon has dismissed the action as a "transparent attempt to distract." In the United Kingdom, the company failed to overturn approval for two class-action lawsuits with potential damages reaching £4 billion. Meanwhile, Spanish regulators stated that both Apple and Amazon were slow to remove anti-competitive terms, a decision that could lead to additional fines.
Amazon also confirmed it will participate in a White House meeting scheduled for March 4, where the company expects to sign a "Ratepayer Protection Pledge." This initiative aims to address rising electricity prices driven by the data center construction boom. However, Ari Peskoe, director of the Electricity Law Initiative at Harvard Law School, criticized the pledge as "meaningless" without utility contracts that effectively shift data-center costs onto the operations themselves.
The broader technology sector also faced pressure Thursday. Notable decliner Nvidia experienced a significant drop, contributing to a negative opening for the Nasdaq Composite Index. The S&P 500 was down approximately 0.7%, while the Nasdaq fell around 1.4% in early trading, according to Associated Press reports.
Market attention now turns to upcoming economic data releases. The U.S. Producer Price Index for January, a key measure of wholesale inflation, is scheduled for release Friday. The February jobs report is slated for March 6. Both reports are considered critical for shaping interest rate forecasts. Traders also remain alert for further details, official confirmation, or pushback regarding the reported discussions between Amazon and OpenAI.
