OpenAI in Talks to Raise $10 Billion From Amazon
OpenAI is in discussions with Amazon over a potential investment of at least $10 billion, as the artificial intelligence company looks to secure additional funding to support its expanding operations and computing needs. The talks are at an early stage and no final agreement has been reached, according to people familiar with the matter.
Possible Shift to Amazon AI Chips
As part of the discussions, OpenAI is also exploring the use of Amazon’s in-house artificial intelligence chips to power its models and services. Amazon has been developing its own AI processors to reduce reliance on third-party chipmakers and strengthen its cloud computing offering. Any move by OpenAI to adopt Amazon’s chips would mark a significant shift in how it sources large-scale computing power.
Funding Needs and Valuation
OpenAI has been seeking large capital infusions as competition intensifies in the AI sector and costs associated with training and running advanced models continue to rise. The company has attracted strong investor interest in recent years and has been valued at hundreds of billions of dollars in private transactions. A deal of this size would further underline the scale of investment flowing into artificial intelligence.
Relationship With Existing Partners
OpenAI already has a close partnership with Microsoft, which has invested heavily in the company and provides cloud infrastructure for many of its products. The talks with Amazon highlight OpenAI’s efforts to diversify funding sources and infrastructure options, even as major technology firms compete to play a central role in the AI ecosystem.
No Official Comment Yet
Neither OpenAI nor Amazon has made a public statement on the reported discussions. Any potential agreement would depend on negotiations over investment terms, technology use and strategic alignment, and could still change or fail to materialise.
