Breakfast News: OpenAI Seeks $10B From AMZN

Breakfast News: OpenAI Seeks $10B From AMZN

December 17, 2025

1. OpenAI in $10B Talks with Amazon

OpenAI is in talks with Amazon (AMZN +0.21%) aimed at raising an investment of at least $10 billion, first reported by The Information. Microsoft (MSFT +0.22%) has invested over $13 billion in the AI pioneer since 2019, though after a recent restructuring OpenAI is free to pursue new partners.

• Reducing dependency on Microsoft Azure platform: OpenAI has so far been largely tied to Nvidia (NVDA +3.80%) processors acquired via Azure, but a new agreement would open the way to using Trainium AI chips developed by Amazon Web Services. 
• “It has been torching cash its entire existence”: When asked whether they’d buy into OpenAI’s IPO if it were to happen, Fool analyst Seth Jayson stated “Absolutely not. For an investment to make sense, you ought to have either a cash-productive business or a trustworthy leader to go with the revenue growth. With OpenAI, you get neither.”

2. Taxi Wars: Global Expansion

Alphabet’s (GOOG +1.55%) Waymo is looking to secure $15 billion in new funding, from both its parent company and from outside investors, reports Bloomberg. The move could value the autonomous driving offshoot at around $100 billion, as Waymo aims to cement its position as the U.S. robotaxi leader.

• 20 additional cities in 2026: Waymo plans to expand its autonomous taxi business next year, launching services in Tokyo, London, and other international cities.
• Allegedly misleading customers: Tesla (TSLA 0.46%) could be hit by a 30-day suspension of sales in California after the state’s Department of Motor Vehicles claimed the company overstated its self-driving capabilities. 

3. Lennar Reports Profit Squeeze

Lennar (LEN 0.31%) posted a 50% drop in fourth-quarter year-over-year earnings yesterday, sending the stock down 3.5% in pre-market trading. Profitability dipped, as the homebuilder’s gross margin declined to 17% from 22.1% this time last year.

• Average sales price down 10%: The quarter’s profit squeeze came from a combination of persistent cost pressures and the need for discounting and price incentives. 
• “Affordability and consumer confidence have remained challenging”: Co-CEO Stuart Miller said Lennar is “adapting to a new normal as the market finds its footing,” and offered guidance for 17,000 to 18,000 homes in Q1 with an average sales price of $365,000 to $375,000. 

4. Next Up: Chips, Mowers, Cleaners

Micron (MU +6.99%) reports Q1 earnings after market close today, with investors waiting to see if the AI-led surge in demand for memory chips and storage products will continue into 2026. The previous quarter highlighted the contrast between high capital investment and competitive pressures.

• Superscore of 66 on our Hidden Gems Primary database: Stock Advisor recommendation Toro (TTC 0.67%) will post a Q4 update this morning, following a 5.7% rise in net sales in Q3. 
• 59 years of consecutive dividend increases, making it a Dividend King: Dividend Investor recommendation ABM (ABM 2.99%) will reveal Q4 figures before today’s opening bell, as analysts predict 4.4% revenue growth year over year.

5. Your Take

Last week on the Motley Fool Money podcast, contributing analyst Jon Quast said “If you’re bullish on Nvidia here, or Advanced Micro Devices (AMD +6.17%) for that matter, you’re still expecting this AI trend and the buildout of the infrastructure to last at least a couple more years… I believe that you need to be bullish on Micron as well, because what they are supplying to its part of the AI infrastructure buildout is just as important as what the other companies are providing. If you’re bullish on the GPU component, you need to be bullish on memory.”

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