Amazon is reportedly in discussions to invest up to $10 billion in OpenAI, aiming to enhance the AI lab’s capabilities by leveraging Amazon’s AI chips. This potential deal, as reported by CNBC, could value OpenAI at over $500 billion, according to Bloomberg.
Seeking to strengthen its position in the AI landscape, Amazon has already allocated $8 billion to Anthropic, a competitor to OpenAI. Amazon recently introduced the latest Trainium series of chips, complementing its cloud services through Amazon Web Services.
This investment consideration follows OpenAI’s shift to a for-profit model, granting it more flexibility in engaging with investors beyond its initial supporter, Microsoft, who holds a 27% stake in the company.
The tech industry has seen a trend of circular deals in AI, where established hardware and cloud service providers collaborate with emerging AI firms. OpenAI’s strategic investments in CoreWeave, AMD, and Broadcom, coupled with deals like the $38 billion cloud computing agreement with Amazon, exemplify this trend.
Both Amazon and OpenAI have not yet issued official statements regarding these discussions.
Source: TechCrunch
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