Amazon is currently engaged in discussions to potentially invest as much as $50 billion in OpenAI, the creator of ChatGPT, according to a source who spoke to Reuters on Thursday. This significant investment, if finalized, could position Amazon as the biggest contributor in OpenAI's ongoing fundraising efforts, highlighting the intense competition among technology giants to secure a foothold in the artificial intelligence sector.
Early-Stage Negotiations and Competitive Landscape
The talks are still in their preliminary phases, with the exact figures yet to be finalized, the source emphasized. This development comes as major technology companies and investors, including SoftBank Group Corp, are actively seeking partnerships with OpenAI. The startup is heavily investing in data centers, and closer collaborations are seen as a strategic move to gain a competitive edge in the rapidly evolving AI race.
OpenAI's Fundraising and Valuation Goals
OpenAI is aiming to raise up to $100 billion in funding, which could value the company at approximately $830 billion, as reported by Reuters earlier this week. In a related move, SoftBank Group is also in talks to invest an additional $30 billion in the startup. Furthermore, OpenAI has recently signed a $10 billion computing deal with Cerebras, a challenger to Nvidia, and is preparing for an initial public offering that might value it as high as $1 trillion.
Leadership and Strategic Moves
Amazon CEO Andy Jassy is reportedly leading the negotiations with OpenAI CEO Sam Altman, according to the Wall Street Journal, which first broke the news. Amazon's potential investment of up to $50 billion underscores its aggressive push into AI, complementing its existing stake in Anthropic, where it has invested about $8 billion. Anthropic, recently valued at $183 billion, has emerged as a key rival to OpenAI, with forecasts suggesting it could nearly triple its annualized revenue run rate to around $26 billion in 2026.
Broader Investment Talks and Industry Dynamics
In addition to Amazon, other tech heavyweights are also in discussions to invest in OpenAI. The Information reported on Wednesday that Nvidia, Amazon, and Microsoft are considering investments totaling up to $60 billion. Specifically, Nvidia, an existing investor whose chips power OpenAI's AI models, is in talks to invest up to $30 billion, while Microsoft, a longstanding backer, is considering an investment of less than $10 billion.
Amazon has declined to comment on the matter, and OpenAI did not immediately respond to Reuters' inquiries. This flurry of investment activity reflects the high stakes in the AI industry, as companies vie to leverage cutting-edge technologies for future growth and innovation.
