Amazon is reportedly in early-stage negotiations to invest up to $10 billion in OpenAI, potentially positioning the AI research lab to utilize Amazon’s proprietary AI chips, according to a CNBC report. Should this investment proceed, it could elevate OpenAI’s valuation to over $500 billion, as detailed by Bloomberg, which cited an unnamed source.
With a keen interest in expanding its footprint in the artificial intelligence sector, Amazon has already invested $8 billion in Anthropic, a competing AI firm. Earlier this month, the company revealed the latest version of its Trainium chip series and announced ongoing developments to enhance its cloud computing services through Amazon Web Services (AWS).
This investment consideration follows OpenAI’s shift to a for-profit structure, allowing for increased flexibility in securing partnerships beyond its primary investor, Microsoft, which holds a 27% stake in the company.
Amazon’s potential investment in OpenAI highlights a growing trend of circular deals within the AI landscape, where leading hardware manufacturers and cloud service providers collaborate with emerging AI firms. These partnerships often involve the younger companies committing to utilize the established firms’ data centers and chips in exchange for access to critical resources.
Earlier this year, OpenAI invested $350 million in CoreWeave, which enabled the startup to acquire chips from Nvidia—a setup that ultimately benefits both parties through enhanced revenue and resource sharing. In addition, OpenAI secured a 10% equity stake in AMD and entered a chip usage agreement with Broadcom, further solidifying its footprint in the industry. Notably, in November, OpenAI forged a significant $38 billion cloud computing partnership with Amazon.
Neither OpenAI nor Amazon has commented on the ongoing negotiations at this time.
