Amazon.com Inc. is reportedly discussing a $10 billion investment in the artificial intelligence powerhouse OpenAI. Sources indicate these talks, described as "very fluid," could value the company at over $500 billion. This potential deal emerges as OpenAI prepares for an eventual initial public offering.
The proposed investment serves as a strategic maneuver to strengthen Amazon’s position in the competitive AI landscape. A key component of the deal requires OpenAI to utilize Amazon’s proprietary Trainium AI chips.
This utilization provides a significant boost to Amazon Web Services (AWS) and challenges Nvidia’s dominance in the AI hardware market. The deal also signals OpenAI’s intent to diversify its cloud computing partnerships beyond its deep ties with Microsoft.