Major Bank Ratings | Citi: Reiterates "Buy" Rating on Amazon, Expansion of Cooperation with OpenAI Brings Three Major Strategic Benefits

Glonghui, March 2｜Citi released a report stating that Amazon has announced a significant expansion of its partnership with OpenAI. Amazon will invest $50 billion in OpenAI, while OpenAI has committed to increasing its AWS computing expenditure by $100 billion over the next eight years. The additional computing is expected to consume 2 GW of Trainium 3 and 4 generation capacity. The bank believes this expanded collaboration brings three main strategic benefits: 1) With OpenAI models integrated into Bedrock and Amazon’s consumer business, it will further accelerate AWS’s AI capabilities; 2) With greater computing scale, it will enhance the capabilities and infrastructure of Trainium; 3) It is likely to pave the way for Amazon’s broader agent-based business strategy. In terms of capital expenditure, although the bank expects investments to continue increasing as a result, given server utilization and the direct link between computing and revenue, the bank has become more positive about the sustainable acceleration of AWS revenue growth.