OpenAI Pursues Major Investment to Boost Valuation
OpenAI, currently valued at $500 billion, is reportedly seeking an additional $100 billion in investment, which could push its valuation to a staggering $830 billion. The Wall Street Journal has reported that Amazon is in discussions to contribute at least $50 billion to this record-breaking funding round, although the details of the potential deal remain scarce.
Negotiations Led by Amazon and OpenAI Executives
Amazon CEO Andy Jassy is leading the negotiations with OpenAI’s CEO Sam Altman, according to the Journal. Both companies have not commented publicly on the matter. Additionally, OpenAI has been reportedly in talks with sovereign wealth funds in the Middle East and has also engaged with other major tech players, including Nvidia, Microsoft, and SoftBank. The deal is expected to close by the end of Q1.
Amazon’s Connection to OpenAI Competitor Anthropic
This potential partnership between Amazon and OpenAI is noteworthy, given Amazon’s existing relationship with OpenAI’s competitor, Anthropic. Amazon’s AWS is the primary cloud and training provider for Anthropic, and the company has invested at least $8 billion into the AI startup. Furthermore, Amazon has recently opened an $11 billion data center campus in Indiana, designed specifically to run Anthropic’s models, highlighting the complex dynamics at play in the growing AI sector.
Featured image credits: Heute.at
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