Amazon Mulls Massive $10bn Investment in OpenAI
Amazon is in discussions to invest $10 billion in OpenAI as part of efforts to further strengthen its position in the artificial intelligence sector, according to a report by the Financial Times. Alongside the potential investment, Amazon is expected to supply its in-house Trainium AI chips, while OpenAI would lease additional data centre capacity from Amazon Web Services (AWS). If the deal is finalised, OpenAI’s valuation could exceed $500 billion, reports TechCrunch.
The report also suggests that Amazon and OpenAI are exploring possible collaboration in the e-commerce space, under which OpenAI could provide AI-powered features for Amazon’s online marketplace. However, due to OpenAI’s existing agreement with Microsoft, the company’s most advanced AI models would not be made available on Amazon’s cloud platform at this stage.
Earlier, OpenAI restructured its agreement with Microsoft, allowing it to use data centres operated by other providers. Around the same time, the company also entered into major deals with Nvidia, Oracle, and AMD. Nevertheless, the so-called “circular” structure—where investment funds are effectively returned through infrastructure leasing—has raised concerns among some investors.
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