Amazon.com, Inc. (NASDAQ:AMZN) recently attracted attention from Jim Cramer, who described it as a “serious company.” He commented on the controversial $10 billion investment Amazon is reportedly making in OpenAI. While this deal could potentially boost OpenAI’s finances, given its substantial obligations, it raises questions about Amazon’s strategy. OpenAI, which has a pre-established partnership with Amazon Web Services (AWS), might use these funds to leverage Amazon’s AI chips, steering clear of competitors like NVIDIA. Cramer expressed skepticism about OpenAI’s uniqueness and long-term sustainability, hinting at a lack of competitive moat around its ChatGPT product. Although AMZN remains a strong investment candidate, some analysts suggest alternative AI stocks might offer better upside with lower risk. For insights into undervalued AI stocks capitalizing on market trends, check out our free report.
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Originally published at Insider Monkey.
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