OpenAI is in talks to raise at least $10 billion from Amazon.com, Inc (NASDAQ:AMZN), according to people familiar with the matter. The discussions could value OpenAI at more than $500 billion and may include the use of Amazon’s Trainium chips for AI workloads.
The negotiations reportedly began around October following OpenAI’s restructuring, after which Microsoft Corporation (NASDAQ:MSFT) held roughly a 27% stake and retained exclusive cloud rights to commercialize OpenAI’s models.
Amazon’s Trainium chip is central to its strategy to strengthen its position in artificial intelligence infrastructure. The chip is positioned as a lower-cost alternative to Nvidia’s graphics processing units, which currently dominate the AI accelerator market.
As the world’s largest cloud services provider, Amazon Web Services is seeking to attract AI developers by emphasizing affordability and diversified compute options. Developers are also evaluating alternatives offered by other major cloud providers, including Google.
The discussions remain preliminary, and the terms of any potential agreement could change or fail to materialize.
#Investor Takeaway
A potential investment and infrastructure partnership could reshape competitive dynamics across the AI cloud and semiconductor ecosystem.
#Market Impact
Any progress or breakdown in the talks could influence investor sentiment toward Amazon, OpenAI-linked partners, and the broader AI hardware market.
#What’s Next
Investors are expected to closely watch for updates on the negotiations, OpenAI’s corporate developments, and any future funding announcements.