Overview of "Amazon Is in Talks to Invest Up to $50 Billion in OpenAI’s Latest Funding Round"
This PM edition of What's News from The Wall Street Journal (host: Alex Osola) summarizes top national, political, business, and market headlines for Thursday, Jan. 29. The episode’s lead scoop: Amazon is in talks to invest up to $50 billion in OpenAI’s latest funding round. Other major stories cover shifts in federal immigration enforcement in Minneapolis, a potential deal to avert a partial government shutdown, mixed market reactions after big tech earnings, corporate cost cuts and layoffs, drug-price reductions, and a continued boom in ultra-luxury real estate.
Key headlines
- Amazon is reportedly in talks to invest up to $50 billion in OpenAI’s current funding round — a deal that could make Amazon the single largest contributor and deepen ties between the companies.
- White House border czar Tom Homan is overseeing immigration operations in Minneapolis and is planning to begin drawing down the federal law-enforcement presence there.
- President Trump said talks with Senate Democrats may be nearing a deal to avoid a partial government shutdown; the spending deadline is the following evening.
- Markets closed mixed: tech weakness (notably Microsoft) dragged indexes lower, while Meta rallied on results and Apple beat expectations with strong iPhone sales.
- Dow (chemicals) announced 4,500 job cuts as part of cost reduction efforts tied to AI productivity initiatives.
- Drugmakers cut prices on some widely used medicines (about 20 drugs), in some cases steeply—driven largely by changes in government policy such as Medicare negotiations.
- Ultra-luxury housing sales (homes $10M+) jumped roughly one-third year-over-year, with traditional hubs and emerging markets both active.
Amazon — OpenAI funding scoop
- What was reported: The Journal exclusively reported Amazon is in talks to invest up to $50 billion in OpenAI’s latest fundraising round. Such a contribution could make Amazon the biggest backer in the round.
- Strategic context: Amazon has already invested in Anthropic and is heavily investing in AI infrastructure internally while also pursuing cost cuts.
- Note on relationships: News Corp (owner of WSJ) has a content licensing relationship with OpenAI—disclosed in the reporting.
Minneapolis and federal immigration enforcement
- Change in approach: Tom Homan, appointed as the White House border czar, said federal law-enforcement presence in Minneapolis will be reduced as operations are made “safer, more efficient, by the book.”
- Likely shift: WSJ reporting suggests a move away from large, high-profile street operations toward more targeted enforcement (focusing on criminals), though arrests are expected to continue.
- Local and political responses: Minneapolis Mayor Jacob Frey called for an end to aggressive enforcement nationwide. Some states (e.g., Maine) reported pullbacks after federal or local pushback.
Shutdown talks and congressional dynamics
- Status: President Trump said talks with Democrats are progressing and a shutdown may be avoidable; the funding deadline is imminent.
- Point of contention: Democrats oppose approving a $1.3 billion Homeland Security package as-is because it funds immigration enforcement; they are pushing for restrictions such as mandatory body cameras for federal officers.
- Senate action: A vote on the full spending package failed; discussions were reportedly considering removing Homeland Security funding from the current package and passing a short-term stopgap while negotiating enforcement restrictions later.
Markets and corporate earnings
- Market moves: Major indexes closed mixed; Nasdaq fell ~0.7% driven largely by disappointing Microsoft earnings and weakness in software stocks (Workday, Salesforce).
- Notable winners/losers:
- Microsoft: Significant stock drop; large-cap impact on indexes.
- Meta: Post-earnings rally, up over 10%.
- Apple: Strong iPhone sales and record profit beating expectations.
- Corporate cost actions:
- Dow (chemical giant) plans 4,500 layoffs while citing AI-driven productivity initiatives.
- Drugmakers cut prices on roughly 20 widely used medications (some cuts up to ~92%), influenced by Medicare price negotiations and policy changes.
Ultra-luxury housing market
- Trend: Sales in the top 10 U.S. luxury markets (homes $10M+) rose about one-third year-over-year.
- Drivers:
- Concentration of wealth gains in stocks, private equity, and real estate (especially from AI and tech gains).
- Limited luxury inventory in key areas (e.g., Bay Area) pushes capital into other markets.
- Migration of wealthy residents from high-tax states (NY, CA) to lower-tax states — creating new high-end hotspots.
- Emerging markets: Alongside established hubs (NY, L.A., Aspen, Palm Beach), markets such as San Diego, Phoenix, and Dallas are seeing more $10M+ deals.
Notable quotes
- Tom Homan: “What we've been working on is making this operation safer, more efficient by the book.” — on reducing federal presence in Minneapolis.
- President Trump: “Hopefully we won't have a shutdown... I think we're getting close.” — on shutdown talks.
- Senate Minority Leader Chuck Schumer: “Enough is enough. What ICE is doing outside the law is state‑sanctioned thuggery and it must stop.” — criticizing federal immigration operations.
Takeaways and what to watch
- AI funding: A potential $50B Amazon investment in OpenAI would be transformational for the AI landscape — monitor regulatory/competitive fallout and how it affects cloud and infrastructure partnerships.
- Policy and enforcement: Shifts in federal immigration tactics could affect local policing dynamics and upcoming congressional spending negotiations.
- Markets: Watch tech earnings cadence and software stocks for continued volatility; monitor big-cap names (Microsoft, Apple, Meta) for index-moving surprises.
- Healthcare pricing: Drug price reductions tied to policy changes may signal further pricing adjustments across the sector.
- Real estate: Ultra-luxury demand remains strong despite broader housing softness — expect more high-end deals in both traditional and emerging luxury markets.
Credits & extras
- Episode produced by Pierre Bien-Aimé; supervising producer Tali Arbel; host Alex Osola.
- The transcript included sponsor reads (Fidelity Trader Plus, Adobe) and a disclosure that News Corp has a content licensing partnership with OpenAI.