Amazon Stock Is Moving Higher Monday: What's Going On?

Amazon.com Inc AMZN shares are trading higher Monday. The company announced a strategic partnership to advance its generative AI capabilities. 

What Happened: Amazon said it will invest up to $4 billion in AI startup Anthropic and have a minority ownership stake in the company.

As part of the strategic collaboration, Anthropic will use Amazon Web Services Trainium and Inferentia chips to build its future foundation models. AWS will also become the primary cloud provider of Anthropic. The AI company will run a majority of its workloads on AWS. 

Anthropic will provide AWS customers with early access to unique features for its models and Amazon developers and engineers will have access to Anthropic models to incorporate generative AI into their work processes. 

"We have tremendous respect for Anthropic's team and foundation models, and believe we can help improve many customer experiences, short and long-term, through our deeper collaboration," said Andy Jassy, CEO of Amazon.

Anthropic's foundation model Claude is a direct competitor of OpenAI's ChatGPT. 

See Also: Amazon Invests $4 Billion In ChatGPT Competitor, AI Startup Anthropic

Following the announcement, Wedbush analyst Scott Devitt reiterated Amazon with an Outperform rating and maintained a price target of $180. Telsey Advisory Group analyst Joseph Feldman also reiterated an Outperform rating and maintained a $160 price target.

AMZN Price Action: Amazon shares were up 1.11% at $130.55 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Amazon.