Amazon shares surged 14.53% to $269.73 after the company reported robust second-quarter financial results. The sharp post-earnings advance was supported by higher revenue, increased operating income, strong cloud demand, and growing advertising sales. The company also completed its planned $50 billion investment in OpenAI after fulfilling its remaining funding commitment, cementing one of the largest single-company commitments to an AI model provider and intensifying the competition among hyperscalers to secure exclusive AI workloads on their cloud platforms.

Amazon Finalizes $50 Billion OpenAI Investment

Amazon completed the investment by providing the remaining $35 billion under an earlier equity agreement. The company had previously invested $15 billion in OpenAI's Series C preferred stock, bringing its total investment to $50 billion.

Amazon first disclosed the commitment through a Form 8-K filing dated February 27, 2026. Under the agreement, an Amazon subsidiary agreed to purchase an additional $35 billion of OpenAI Series C preferred shares. The deal required OpenAI to either complete specified milestones or pursue a public listing, meaning the transaction's final structure could shift depending on which condition OpenAI satisfies first.

Amazon subsequently confirmed the completed funding through a quarterly Securities and Exchange Commission filing. The transaction strengthens Amazon's position in the expanding artificial intelligence infrastructure market and aligns OpenAI's computing requirements with Amazon's broader cloud and data-center expansion strategy. The deal positions AWS as the primary compute provider for one of the most widely used AI model families, a relationship that could lock in substantial long-term cloud workloads as enterprise AI adoption accelerates.

AWS and Advertising Drive Q2 Results

Amazon reported second-quarter revenue of $200.6 billion, representing 20% year-over-year growth. Operating income increased 43% to reach $27.5 billion during the quarter. AWS revenue climbed 36.7% as demand intensified across both cloud and artificial intelligence services, reinforcing AWS's lead in the global cloud infrastructure market ahead of Microsoft Azure and Google Cloud.

Chief Executive Andy Jassy stated that AWS's artificial intelligence revenue run rate exceeded $25 billion, with the segment recording triple-digit percentage growth compared to the same period last year. Amazon also raised its 2026 capital expenditure guidance to $220 billion to support surging infrastructure demand, a figure that underscores the scale of investment required to maintain competitive positioning in AI compute capacity and reflects a broader capital-intensive cycle across major cloud providers.

Amazon Ads generated $19.8 billion in quarterly revenue, marking 26% annual growth. Sponsored Products remained the company's largest advertising service and continued to underpin overall sales growth. Amazon expanded its automated advertising targeting tools into 11 additional countries during the year. The advertising division continues to close the gap with Alphabet and Meta in the digital advertising market, leveraging proprietary shopping-intent data that competitors cannot replicate.

Stock Performance and Advertising Momentum

Following the earnings report, Amazon stock traded well above the previous support area near $235.50. Buyers maintained the shares near session highs throughout the afternoon, with the stock subsequently holding within the $268 to $270 range.

Amazon also recorded stronger advertising activity across Prime Video and its live sports portfolio. The company added 30 new NBA advertisers during the first year of its partnership, and advertising inventory across NBA, WNBA, NASCAR, and Thursday Night Football sold out, signaling growing advertiser demand for Amazon's premium video inventory as traditional linear television audiences continue to shift toward streaming.

Independent agency Skai reported increased usage of Amazon's demand-side advertising platform during the quarter. Clicks through Amazon DSP more than doubled year-over-year, while average costs per click declined. During Prime Day, DSP's share of Amazon Ads spending rose from 17.9% to 25.5%. The OpenAI investment completion and raised capex guidance set up AWS's second-half infrastructure delivery capacity and OpenAI milestone progress as the key variables to monitor in Amazon's next quarterly report.