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Amazon Considers Major Investment in OpenAI

  • tech360.tv
  • 7 hours ago
  • 2 min read

Amazon is in discussions to invest up to USD 50 billion in OpenAI, the creator of ChatGPT. These early-stage talks could position Amazon as the largest contributor to the artificial intelligence company’s current fundraising initiative.

Credit: AMAZON
Credit: AMAZON

The discussions are currently in their initial phases, and the final investment figures have not been determined. Big technology companies and various investors are actively pursuing partnerships with OpenAI, which is heavily investing in data centres.


These companies anticipate that closer affiliations with the artificial intelligence startup will provide a competitive advantage in the rapidly evolving AI sector. OpenAI is reportedly seeking to raise up to USD 100 billion in funding, which would value the organisation at approximately USD 830 billion.


SoftBank Group Corp. is also reportedly in talks to invest an additional USD 30 billion in the startup. OpenAI, which secured a USD 10 billion computing agreement with Cerebras, is preparing for a potential initial public offering that could value it at up to USD 1 trillion.


Amazon Chief Executive Officer Andy Jassy is leading the negotiations with OpenAI Chief Executive Officer Sam Altman. This information was initially reported by The Wall Street Journal.


Amazon is also an investor in Anthropic, having committed about USD 8 billion to the company. Anthropic was recently valued at USD 183 billion.


Anthropic has emerged as a key competitor to OpenAI, driven by the strong adoption of its services by enterprise clients. The company forecasts that its annualised revenue run rate for 2026 will more than double, potentially nearly tripling, to around USD 26 billion.


Separately, Nvidia, Amazon, and Microsoft are also in discussions to collectively invest up to USD 60 billion in OpenAI, as reported by The Information on Wednesday. Nvidia, an existing investor whose chips power OpenAI’s artificial intelligence models, is considering an investment of up to USD 30 billion.


Microsoft, a long-term supporter of OpenAI, is discussing an investment of less than USD 10 billion.

  • Amazon is considering an investment of up to USD 50 billion in OpenAI.

  • These discussions are in early stages, with final figures yet to be determined.

  • OpenAI is seeking to raise up to USD 100 billion, potentially valuing it at USD 830 billion.


Source: REUTERS

 
 
 

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