Amazon is in talks to make a major investment in OpenAI that could value the ChatGPT maker at more than $500 billion, underscoring how aggressively Big Tech is still spending to secure artificial intelligence dominance.
The discussions involve a potential investment of roughly $10 billion, Reuters reports.
A person close to the matter says talks are “very fluid” and could change as negotiations continue. The Information, which first broke the news of the potential investment, says OpenAI is looking to use Trainium chips, Amazon’s custom AI chips, and that the financing could trigger a broader fundraising round involving other investors.
OpenAI is also exploring the idea of selling an enterprise version of ChatGPT to Amazon, though it is unclear whether any agreement would include integrating ChatGPT features, such as shopping tools, into Amazon’s own apps.
Amazon and OpenAI did not immediately respond to Reuters’ request for comment.
The news comes as reports surfaced in late October that OpenAI was gearing up for a $1 trillion initial public offering (IPO). OpenAI CFO Sarah Friar has hinted that the AI giant intends to go public in 2027, but advisers see the listing coming as soon as the end of 2026.
Last month, Amazon Web Services (AWS) inked a seven-year, $38 billion agreement with OpenAI. Under the deal, AWS will give OpenAI access to hundreds of thousands of Nvidia chips and can ramp to tens of millions of CPUs for generative AI workloads.
Just last week, Disney signed a $1 billion investment in OpenAI in a three-year licensing deal that allows Sora users to generate short, user-prompted videos that involve 200 characters from Disney, Marvel, Pixar and Star Wars.
Sora is OpenAI’s generative AI video platform.
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