Amazon is in discussions to invest about $10 billion in OpenAI, a deal that could value the ChatGPT maker at more than $500 billion, according to a source familiar with the matter. The talks are described as fluid and could still change, but they highlight the intense demand for computing power as companies race to develop advanced artificial intelligence systems.
The potential investment builds on OpenAI’s expanding partnerships across the tech sector. The AI firm has already signed multi-billion-dollar deals this year with companies including Nvidia and Oracle, and in November agreed to a $38 billion cloud services deal with Amazon. Reports say OpenAI plans to use Amazon’s Trainium AI chips, which compete with products from Nvidia and Google, and the financing could form part of a broader fundraising round involving other investors.
The discussions come as OpenAI prepares the groundwork for a possible initial public offering, which could value the company at up to $1 trillion. Following its restructuring and revised agreement with Microsoft—now a public benefit corporation with Microsoft holding a 27% stake—OpenAI has gained greater flexibility to raise capital and secure computing resources. Amazon, OpenAI and Microsoft declined to comment on the talks.
