Amazon Plans to invest in OpenAI, the maker of ChatGPT, in a deal that could value the AI firm at over $500 billion. Sources say the discussions are ongoing and remain fluid, as both companies explore the potential agreement.
The proposed investment could be around $10 billion, underlining Amazon Plans to deepen its footprint in the artificial intelligence sector. OpenAI is preparing for a potential initial public offering (IPO) that could value the company at up to $1 trillion, making it one of the most valuable AI firms in the world.
This move highlights the growing demand for computing power in AI. Companies such as Nvidia, Oracle, and Microsoft have already signed multi-billion-dollar agreements with OpenAI this year. Amazon’s investment could further strengthen OpenAI’s capacity to scale its AI models and compete globally.
OpenAI recently signed a $38-billion deal to buy cloud services from Amazon, and it plans to use Amazon’s Trainium chips, which rival Nvidia and Google’s offerings. The financing from Amazon could also open doors for a broader fundraising round with other investors.
The discussions come as OpenAI transitions from its non-profit origins into a public benefit corporation, with Microsoft holding a 27% stake. Microsoft has exclusive rights to sell OpenAI models to its cloud customers, but OpenAI’s partnerships with other firms, including Amazon, show its expanding reach.
OpenAI may also offer Amazon an enterprise version of ChatGPT, although it is unclear whether it will integrate Amazon’s shopping features. Both companies have not publicly commented on the potential deal.
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With Amazon Plans to invest significantly in OpenAI, the tech giant signals its commitment to AI innovation and its ambition to stay competitive in the fast-growing artificial intelligence market. This partnership could reshape the AI landscape, boosting computing power, enterprise adoption, and global AI capabilities.
