Amazon.com Inc is in talks to invest about $10 billion in ChatGPT-maker OpenAI, potentially valuing the AI firm at over $500 billion. The discussions are ongoing and described as “very fluid,” according to sources. The move underscores OpenAI’s growing influence in the AI sector and its quest for computing power.
The potential deal comes amid a global rush to build AI systems rivaling human intelligence. This year, companies like Nvidia and Oracle signed multi-billion-dollar agreements with OpenAI. Last November, OpenAI also secured a $38-billion deal to buy cloud services from Amazon. Investors remain cautious, monitoring whether AI demand will sustain or if heavy spending may fall short.
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The talks coincide with OpenAI’s plans for an initial public offering that could value the company at up to $1 trillion. The firm has expanded partnerships beyond its non-profit roots, following its deal with Microsoft. Microsoft owns a 27% stake in OpenAI and has exclusive rights to sell its AI models to cloud customers, providing both financial and operational leverage.
According to reports, OpenAI may use Amazon’s Trainium chips, which compete with Nvidia and Google, and the funding could attract additional investors. OpenAI is also exploring selling an enterprise version of ChatGPT to Amazon. It remains unclear whether the deal will integrate AI features into Amazon’s shopping apps.
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OpenAI, Amazon, and Microsoft have not publicly commented on the discussions. Analysts say the potential investment highlights the strategic importance of AI partnerships and infrastructure. The outcome could influence the future of AI commercialization, computing capacity, and global market competition.