Amazon is reportedly planning to invest $50B in OpenAI at a valuation of $500 billion, as the company is currently hunting to raise funds of $100 billion.
The funding round could help the ChatGPT manufacturer to spike a titanic $830 billion.
As per the Wall Street Journal, Amazon may contribute at least $50 billion of that record-breaking investment.
Further details regarding the deal remain underwraps, although the Journal notes that Amazon’s CEO, Andy Jassy, is currently leading the negotiations with OpenAI CEO Sam Altman.
In its pursuit of additional funding, OpenAI is reportedly in talks with sovereign wealth funds in the Middle East, and according to The New York Times the startup holds discussions with Nvidia, Microsoft, and SoftBank.
The funding deal is likely to close by the end of Q1.
If this partnership occurs, it would be interesting because of Amazon’s close ties to the OpenAI competitor Anthropic, as Amazon’s AWS is the primary cloud provider for Anthropic and also holds equity in the company.
Moreover, Amazon opened an $11 billion data center campus in Indiana, which is particularly designed to operate Anthropic models.
