Amazon is reportedly in talks to invest up to $10 billion in OpenAI, a strategic move that would deepen ties between the two companies and expand the company’s role in the fledgling field of AI.
As per CNBC, the potential deal would involve OpenAI using Amazon’s AI chips, while Bloomberg reported that the investment is expected to value OpenAI at over $500 billion.
Discussions come as Amazon expands its AI investments. So far, it has committed $8 billion to Anthropic, a major OpenAI competitor, and continues to expand its in-house AI hardware lineup.
Earlier this month, the E-commerce giant launched the latest variant of its Trainium AI chips and announced plans for future iterations, strengthening Amazon Web Services’ cloud and AI offerings.
The potential investment comes after OpenAI’s recent shift to a for-profit structure that allows it greater flexibility to collaborate with investors beyond Microsoft, reportedly holding 27% equity.
If this deal happens, the deal would reflect an increasing trend of “circular” AI partnerships, where cloud providers and hardware manufacturers invest in AI startups that, in turn, commit to using their chips and data centers.
Earlier this year, the ChatGPT manufacturer invested $350 million in CoreWeave that used the funds to buy Nvidia chips that assist in strengthening OpenAI’s models.
Moreover, OpenAI has partnered chip-related agreements with AMD and Broadcom.
Notably, Amazon and OpenAI have yet to officially confirm the deal.
