Amazon is reportedly in discussions to invest as much as $10 billion in OpenAI, the artificial intelligence company behind ChatGPT, in a move that could value the business at more than $500 billion and further intensify competition in the global AI market.
The talks, first reported by The Information and subsequently confirmed by multiple sources, are said to be at an early and fluid stage. News of the potential deal pushed Amazon shares up around 0.6 per cent, reflecting investor optimism around the deepening relationship between the world’s largest cloud provider and one of the most influential AI developers.
As part of the proposed investment, OpenAI is expected to increase its use of Amazon’s Trainium AI accelerator chips, which are designed to compete with Nvidia’s dominant processors and similar offerings from Google. The deal could also form the cornerstone of a broader fundraising round involving additional investors.
The discussions come as OpenAI explores longer-term capital options, including a potential initial public offering that could value the company at as much as $1 trillion. The rapid expansion of generative AI has driven extraordinary demand for computing power, placing cloud infrastructure providers such as Amazon Web Services (AWS) at the centre of the technology’s growth.
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