AI firm OpenAI says that its decision to make its AI models available on tech giant Amazon’s (AMZN) AWS is not connected to its recent changes with software titan Microsoft (MSFT). In fact, OpenAI’s revenue chief, Denise Dresser, made that clear in an interview with CNBC. However, analysts are not fully convinced. RBC Capital Markets (RY) analyst Rishi Jaluria pointed out that OpenAI has been building a closer relationship with Amazon for months, which makes the timing hard to ignore. Because of this, some believe that these moves are part of a change in OpenAI’s strategy.
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Forget margin or options. Here's how the pros trade AMZNIndeed, the relationship between OpenAI and Microsoft has already changed significantly. Microsoft has invested heavily in OpenAI and owns about a 27% stake, while OpenAI committed to spending up to $250 billion on Azure services. However, OpenAI has been growing its ties with Amazon. More specifically, OpenAI signed a huge cloud deal back in 2025 worth $38 billion and agreed to a $50 billion investment from Amazon earlier this year.
In addition, Microsoft no longer has exclusive rights to OpenAI’s technology, and it is no longer the only cloud provider for its products. In response, Microsoft has also started working more with other AI companies like Anthropic. Still, despite this growing competition, all sides remain dependent on each other. OpenAI needs massive computing power, while companies like Microsoft and Amazon need access to leading AI models. So even though the relationship is changing, it is not breaking apart.
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Turning to Wall Street, out of the two stocks mentioned above, analysts think that MSFT stock has more room to run than AMZN. In fact, MSFT’s price target of $554.98 per share implies 30.6% upside versus AMZN’s 9.4%.
