Amazon's (NASDAQ:AMZN) newly announced strategic partnership with OpenAI is a “positive proof point” for the competitive positioning in AI for its Amazon Web Services arm, Goldman Sachs said.

The agreement includes an investment by Amazon of up to $50 billion and an expanded eight-year, $138 billion workload commitment from OpenAI to AWS.

Reiterating its 'buy' rating and $280 price target, Goldman estimates that OpenAI and Anthropic combined could generate circa $13.2 billion of revenues for AWS in 2026, growing at around a 66% three-year compound annual growth rate to reach roughly $60.1 billion by 2029, or about 21% of total AWS revenues.

Analysts said they remain “convinced that AWS can achieve a ~20%+ revenue CAGR over the next three years”, supported by accelerating backlog trends and rising AI-related demand.

There was also confidence expressed in sustained 30%-plus EBIT margins for AWS, despite higher depreciation from stepped-up capital investment, arguing scale and revenue durability should offset cost pressures.

Goldman added that Amazon’s custom silicon efforts are gaining traction, noting growing adoption of Trainium by frontier model labs as further validation of its AI infrastructure strategy.