OpenAI is in early-stage discussions with Amazon over a potential investment that could exceed $10 billion, along with a possible agreement to use Amazon-built artificial intelligence chips, according to a person familiar with the matter. The terms of the talks are not final and may change, the source said, requesting anonymity due to the confidential nature of the negotiations. The discussions were confirmed by a broadcaster after being first reported by a publication.
The talks follow a major restructuring completed by OpenAI in October that clarified its long-standing partnership with Microsoft and expanded its strategic flexibility. While Microsoft has invested more than $13 billion in OpenAI since 2019, it no longer holds a right of first refusal to act as OpenAI’s primary computing provider. The revised structure gives OpenAI greater freedom to raise capital and collaborate with companies across the broader AI ecosystem, including the ability to develop certain products with new partners.
Amazon’s potential investment would further intensify competition among Big Tech firms racing to secure footholds in generative artificial intelligence. Amazon has already committed at least $8 billion to OpenAI rival Anthropic, while Microsoft announced last month it would invest up to $5 billion in the startup. Nvidia is also expected to invest as much as $10 billion in Anthropic, underscoring the escalating stakes in the AI arms race.
At the same time, OpenAI has sharply increased its infrastructure spending to meet surging demand for computing power. The company has announced more than $1.4 trillion in infrastructure commitments with partners including Nvidia, Advanced Micro Devices and Broadcom and in November signed its first agreement with Amazon Web Services to purchase $38 billion worth of cloud capacity. In October, OpenAI also completed a $6.6 billion secondary share sale valuing the company at $500 billion, highlighting strong investor appetite amid the rapid global adoption of generative AI technologies.
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