Amazon is in discussions to invest around $10 billion in OpenAIa move that could value the ChatGPT-maker at more than $500 billionaccording to a source familiar with the matter. The talks are said to be fluid and subject to changebut they underline the escalating competition among global technology companies to secure computing power and strategic stakes in advanced artificial intelligence platforms.
The potential investment would deepen OpenAI’s growing ties with major cloud and chip providers. OpenAI has already entered multi-billion-dollar partnerships with Nvidia and Oracleand in November signed a $38 billion cloud services agreement with Amazon. As part of this collaboration, OpenAI is reportedly planning to use Amazon’s Trainium AI chipswhich are positioned as an alternative to offerings from Nvidia and Google.
The Amazon talks are also linked to a broader fundraising round that may include other investors, as OpenAI ramps up capital requirements to support large-scale AI model training and deployment. The demand for specialized chips and data-centre capacity has surged as companies race to develop next-generation AI systems.
The discussions come at a time when OpenAI is laying the groundwork for a possible initial public offeringwith some estimates suggesting the company could eventually be valued at up to $1 trillion. Following its recent restructuring, OpenAI now operates as a public benefit corporationwith Microsoft holding a 27% stake after revising its earlier agreement. The new structure has given OpenAI greater flexibility to raise capital and diversify its computing partnerships beyond Microsoft’s cloud ecosystem.
Amazon, OpenAI, and Microsoft have declined to comment on the ongoing discussions.
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