Amazon.com Inc is negotiating a possible investment in OpenAI that could see the artificial intelligence firm valued at more than $500 billion, according to a source with direct knowledge of the matter. These discussions come as OpenAI is reportedly preparing for an initial public offering that could place its valuation as high as $1 trillion.
The source, who requested anonymity due to the confidential nature of the talks, indicated that Amazon may inject around $10 billion into OpenAI. However, discussions remain highly fluid and subject to change, the source added.
OpenAI’s efforts to broaden its partnership landscape have become increasingly apparent since its shift away from a non-profit structure, the source noted. After recently finalizing a deal with Microsoft, OpenAI restructured as a public benefit corporation overseen by a non-profit. This change eliminated key barriers to raising external capital and accessing advanced computing infrastructure.
Currently, Microsoft holds a 27% ownership stake in OpenAI and possesses exclusive rights to offer OpenAI’s models to its cloud customers. The Information, which first disclosed Amazon’s overtures, reported that OpenAI intends to leverage Amazon’s Trainium chips—positioning itself in competition with the likes of Nvidia and Google.
Amazon’s potential capital infusion may also set the stage for a wider fundraising round, with participation from additional investors, according to The Information.
Additionally, OpenAI is seeking to market an enterprise iteration of ChatGPT to Amazon. The Information reported it remains unclear whether any prospective agreement would include incorporating ChatGPT-driven functionalities—such as AI-powered shopping tools—into Amazon’s own applications.
