Amazon Expands OpenAI Partnership as HSBC Raises Microsoft Target to $593
Amazon announced a major OpenAI partnership to co-develop an AI platform on AWS, loosening Microsoft’s exclusive cloud tie after OpenAI capped revenue-share payments through 2030. HSBC lifted Microsoft’s price target to $593, citing Anthropic’s annual revenue run rate jump to $30 billion and a $30 billion Azure compute commitment reducing OpenAI reliance.
1. Amazon Expands OpenAI Partnership
Amazon Web Services and OpenAI will co-develop a new AI agents platform that can perform computer-based tasks on users’ behalf. The collaboration marks a “major expansion” beyond AI model hosting and gives AWS capabilities to run and scale trusted workloads for enterprise customers.
2. OpenAI Caps Payments, Loosens Microsoft Tie
OpenAI will continue paying Microsoft a capped share of revenue through 2030 but has diversified cloud partnerships with AWS, Google and Oracle. The move reduces Microsoft’s exclusive role in supporting OpenAI’s infrastructure even as Azure remains the primary deployment platform for new products.
3. HSBC Raises Price Target on Anthropic Upside
HSBC increased Microsoft’s price target to $593, highlighting Anthropic’s annual revenue run rate rising to roughly $30 billion and a November deal where Anthropic agreed to buy $30 billion of Azure compute. These new AI relationships could offset Microsoft’s reliance on OpenAI and support Azure growth.