Amazon (Buy, $270 target) Implications of the AWS + OpenAI deal – Is a ChatGPT + AMZN Retail deal coming next?
This morning Amazon Web Services (AWS) announced a multi-year partnership to run OpenAI’s core AI workloads starting immediately.Our Take: Positive for AWS and our Top Pick AMZN, and we see several important implications:
1. This deal is well above our expectations for AWS’s share of OpenAI workloads
2. No mention of Trainium but that could come with Trainium3
3. This is likely the biggest piece of the “unannounced deals” in October
4. Increased likelihood of a commerce integration between AMZN retail and ChatGPT
Amazon.com serves consumers through its online and physical stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and the company develops and produces media content. The company operates customer service centers and provides programs that enable sellers to grow their businesses, sell their products in its stores, and fulfill orders through the company The company serves developers and enterprises of various sizes, including start-ups, government agencies, and academic institutions, through its Amazon Web Services segment, which provides a set of global compute, storage, database, and other service offerings. The company also provides services, such as advertising.
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