OpenAI In Talks With Amazon Over $10B Investment.

OpenAI is in talks with Amazon about a possible investment and a deal to use Amazon’s AI chips, CNBC confirmed. The discussions are still ongoing, and the investment could be more than $10 billion, according to sources.

This potential deal comes after OpenAI restructured its business in October, which gave the company more freedom to raise money and work with new partners beyond Microsoft.Microsoft has invested over $13 billion in OpenAI since 2019. However, OpenAI is no longer required to use Microsoft as its main computing provider and can now build some products with other companies.

Amazon has already invested $8 billion in OpenAI’s rival Anthropic and is now looking to expand further in the fast-growing generative AI space. Microsoft and Nvidia have also invested billions in Anthropic, showing strong competition in the AI industry. Amazon Web Services (AWS) has been developing its own AI chips for years. These chips help power AI models and manage rising demand for computing power. AWS recently announced new versions of its Trainium chips.

OpenAI has also made massive infrastructure investments, signing deals with major chipmakers like Nvidia, AMD, and Broadcom. Last month, OpenAI agreed to buy $38 billion worth of cloud capacity from AWS, marking its first major deal with the cloud giant.
In October, OpenAI completed a $6.6 billion share sale, valuing the company at $500 billion, allowing employees to sell part of their holdings.