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Jim Cramer Highlights Amazon-OpenAI “Talks”

Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer shed light on. Cramer called it a “serious company” as he stated:

“These days, we’re constantly hearing about what I call these Lazy Susan deals, except they’re being celebrated as good news for both parties. Today, for example, we learned that OpenAI is in some talks to raise at least $10 billion from Amazon, some of which could be spent on Amazon’s AI chips. We heard applause for this all day. Basically, Amazon’s giving OpenAI at least $10 billion, even as OpenAI has a very stretched balance sheet with huge obligations that dramatically exceed its ability to bring in cash.

In return, OpenAI will spend that money on Amazon’s chips instead of maybe using NVIDIA’s. Doesn’t that raise some eyebrows?… Amazon’s a serious company. I don’t know why it would pay OpenAI to use its own chips. I found the whole thing quizzical… I know that Amazon Web Services and OpenAI had an existing partnership from early November, where OpenAI committed $38 billion for a multi-year deal to run its workloads in AWS. Does Amazon’s $10 billion payment to OpenAI help OpenAI pay for that agreement, too? Now, it’s entirely possible that people want to be involved with Sam Altman’s OpenAI so badly that they’re willing to invest in that company to get the money right back. But I’m growing ever more concerned that these kinds of deals… I’m starting to think that OpenAI is not that special with no moat around ChatGPT, and the deals are bad.”

Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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