Amazon Discussions Could Push OpenAI Valuation Past $500 Billion

OpenAI is reportedly in talks with Amazon for a potential investment that could exceed $10 billion. The discussions, which remain in the early stages, could value OpenAI at more than $500 billion.

A key part of the discussions involves OpenAI using Amazon’s Trainium AI chips, and potentially renting more data center capacity from Amazon Web Services (AWS). 

A person familiar with the matter told Bloomberg that the discussions “are at a preliminary stage” and that terms could change as negotiations continue.

OpenAI recently signed a $38 billion agreement with AWS for cloud computing capacity, marking the startup’s first major contract with Amazon’s cloud division. The talks come after OpenAI completed a corporate restructuring in October that allowed the company more freedom to raise funds and collaborate with partners beyond Microsoft. 

Microsoft, which has invested over $13 billion in OpenAI, holds a 27% stake and retains exclusive rights to sell OpenAI models to its cloud customers. Still, OpenAI can now also work with other cloud and chip providers.

AWS has been developing AI chips since 2015, including its Inferentia and Trainium series. Landing OpenAI as a customer — and potentially an investor partner — would be a major endorsement of Amazon’s chip strategy and its broader push to strengthen AWS’s role in the AI boom.

Amazon has already invested heavily in another OpenAI rival, Anthropic, committing at least $8 billion since 2023.

The broader AI investment race

According to The Financial Times, OpenAI has already secured commitments of about $1.5 trillion in computing infrastructure from companies including Nvidia, AMD, Oracle, and Broadcom.

Amazon is not the only competitor looking to strengthen its AI foothold: Microsoft recently pledged up to $5 billion to rival AI startup Anthropic, while Nvidia’s deals could reach $100 billion in the coming years.

The potential Amazon investment also raises the possibility of commercial collaborations. OpenAI is exploring ways to integrate its technology into Amazon’s marketplace, similar to existing partnerships with Etsy, Shopify, and Instacart. 

If the talks succeed, the deal would mark another milestone in OpenAI’s rapid rise, which includes a recent employee share sale valuing the company at $500 billion and plans for a future IPO that could reach $1 trillion.

To learn more about OpenAI’s earlier AWS partnership, see Amazon and OpenAI’s $38B cloud deal.
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