Amazon.com Inc is in talks to invest around $10 billion in OpenAI, the company behind ChatGPT, according to a source familiar with the matter. If finalised, the deal could value OpenAI at more than $500 billion. The source noted that the talks are “very fluid” and subject to change, as the discussions remain private.
The potential investment highlights the intense demand for computing power as technology companies race to build advanced AI systems that can rival or surpass human capabilities. This year alone, OpenAI has secured several multi billion dollar agreements, including deals with companies such as Nvidia and Oracle. In November, OpenAI also signed a $38 billion agreement to purchase cloud services from Amazon.
At the same time, investors remain cautious. There are growing questions around whether AI demand can sustain such high levels of spending and whether these investments will deliver the expected returns.
The talks come as OpenAI prepares for a possible initial public offering that could value the company at up to $1 trillion, as reported in October. The move reflects OpenAI’s growing flexibility to form broad partnerships following changes to its corporate structure.
OpenAI recently transitioned from its non profit roots after finalising a deal with Microsoft that turned it into a public benefit corporation. The company is now controlled by a non profit entity that holds a financial stake, easing earlier restrictions on fundraising and access to computing resources. Microsoft currently owns a 27% stake in OpenAI and holds exclusive rights to sell OpenAI models to its cloud customers.
Neither OpenAI, Amazon, nor Microsoft immediately responded to requests for comment.
A technology publication, which first reported the talks, said OpenAI plans to use Amazon’s Trainium chips, which compete with offerings from Nvidia and Google. The report added that Amazon’s funding could be part of a wider fundraising round involving other investors.
OpenAI is also exploring the sale of an enterprise version of ChatGPT to Amazon. However, it remains unclear whether the discussions include integration of ChatGPT features, such as shopping tools, into Amazon’s own applications.
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