Amazon’s potential multi-billion-dollar investment in the ChatGPT creator OpenAI may depend on whether the AI company reaches a key technological milestone or goes public.
Amazon is in talks to invest up to $50 billion in OpenAI under terms that are still being negotiated, according to Reuters, citing The Information.
The structure of the deal includes $15 billion upfront, with an additional $35 billion contingent on OpenAI either achieving an artificial general intelligence (AGI) milestone or pursuing an initial public offering.
SoftBank and Nvidia each plan to invest $30 billion in three installments over the year as part of the same funding round.
Reuters says it could not independently verify the details. OpenAI and Amazon did not immediately respond to requests for comment outside regular business hours.
OpenAI has reportedly been gearing up for a potential IPO that could value the company at up to $1 trillion.
The negotiations come as major technology firms and investors race to deepen ties with OpenAI, which is spending heavily on data centers to expand compute capacity.
If completed at the reported scale, the investment could make Amazon the largest contributor to OpenAI’s current fundraising round and further intensify competition among hyperscalers in the AI infrastructure buildout.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.