Amazon is holding early talks about investing as much as $10bn in OpenAI, a deal that would involve the artificial intelligence company using Amazon’s own AI chips, according to CNBC. If completed, the investment would value OpenAI at more than $500bn, Bloomberg reported, citing an anonymous source.
Potential valuation and reporting details
The Information first reported the discussions, which have not yet resulted in a final agreement. CNBC said the talks are still at an early stage, and there has been no formal confirmation from either company.
Bloomberg’s report said the proposed investment size would place OpenAI’s valuation above $500bn, a level that would make it one of the most highly valued private technology companies globally.
Amazon’s AI strategy and chip development
Amazon has been expanding its role in the AI sector while spreading its investments across multiple partners. The company has already invested $8bn in Anthropic, an OpenAI competitor, and has positioned its AI hardware as a core part of its cloud business.
Earlier this month, Amazon introduced the latest version of its Trainium AI chips and outlined plans for the next generation. These chips are designed to support AI model training and are closely tied to Amazon Web Services, the company’s cloud computing division.
An OpenAI investment would align with Amazon’s broader effort to encourage AI developers to rely on its data centres and custom hardware.
OpenAI’s shift and investor flexibility
The discussions come a few months after OpenAI completed its transition to a for-profit structure. That change gives the company greater freedom to form investment partnerships beyond Microsoft, which is one of its earliest backers and holds a reported 27% stake.
Microsoft has historically been OpenAI’s primary cloud and infrastructure partner, making any large-scale involvement by Amazon a notable development in the competitive landscape.
Pattern of interconnected AI deals
An Amazon investment in OpenAI would fit into a wider pattern in the AI industry, where cloud providers and chipmakers back AI companies that, in turn, commit to using their infrastructure.
In March, OpenAI invested $350m in CoreWeave. CoreWeave used the funds to purchase chips from Nvidia, which already backs the company. Those chips are then used to provide computing power to OpenAI, increasing CoreWeave’s revenue and, indirectly, the value of OpenAI’s equity stake.
In October, OpenAI took a 10% stake in AMD and agreed to use the chipmaker’s AI GPUs. During the same month, it also signed a chip usage agreement with Broadcom.
In November, OpenAI signed a $38bn cloud computing agreement with Amazon, further strengthening the existing commercial relationship between the two companies.
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