Sam Altman-led OpenAI is reportedly in talks with Amazon.com Inc. (NASDAQ:AMZN) about a potential investment that could exceed $10 billion and a deal to use its artificial intelligence (AI) chips.
The news was first reported by The Information on Tuesday and later by several news outlets, including CNBC and Reuters.
OpenAI and Amazon did not immediately respond to Benzinga‘s requests for comment.
OpenAI Diversifies Deals As AI Race Heats Up
The move follows OpenAI’s recent restructuring and its expanded capability to partner with other companies beyond its existing relationship with Microsoft (NASDAQ:MSFT).
The potential partnership with Amazon also comes on the heels of its $38 billion capacity purchase agreement with the e-commerce giant’s cloud unit Amazon Web Services (AWS).
Meanwhile, Amazon has also shown significant interest in the AI sector, having invested over $8 billion in Anthropic, a rival to OpenAI. AWS’s development of AI chips since 2015 has placed it at a strategic advantage, offering crucial hardware solutions for AI companies aiming to scale their models.
Earlier this month, CEO Andy Jassy said Amazon’s AI chip Trainium2, is already “a multi-billion-dollar revenue run-rate business” with over a million chips in production and over 100,000 companies using it primarily.
OpenAI’s Valuation Surge
OpenAI’s recent $6.6 billion secondary share sale, valuing the company at $500 billion, highlights its growing market presence and financial muscle. The company’s infrastructure commitments have also exceeded $1.4 trillion.
The ChatGPT owner’s ability to attract substantial funding from industry giants like Microsoft and potentially Amazon underscores its pivotal role in the AI ecosystem.
Still, rivals like Alphabet’s Google have posed stiff competition for OpenAI’s models, with Google’s Gemini series gaining traction and reportedly pushing OpenAI into “code red” mode to accelerate improvements.
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