Amazon may invest about $10 billion in OpenAI. Talks between the two companies are in the early stages, the source told Daily Sabah, speaking on condition of anonymity.
The potential deal highlights the relentless search for computing power in the artificial intelligence sector as companies race to build systems that rival or surpass human intelligence.
Companies such as Nvidia and Oracle have signed multi-billion dollar AI deals with OpenAI this year. OpenAI also signed a $38 billion deal to buy cloud services from Amazon in November.
However, investors are wary of signs that demand for AI is waning or that the huge spending is not paying off as expected.
The discussion between Amazon and OpenAI comes as the AI giant is laying the groundwork for an initial public offering (IPO) that could value the company at up to $1 trillion, the ag reported. Reuters in October. The approach underscores OpenAI’s ability to partner broadly after moving away from its nonprofit roots and settling its deal with Microsoft, the source said. The Microsoft deal makes OpenAI a public benefit corporation controlled by a nonprofit that has a stake in OpenAI’s financial success, removing major restrictions on the company’s ability to raise capital and provide computing resources. Microsoft owns a 27% stake in OpenAI and has secured the exclusive right to sell OpenAI models to its cloud customers. The Information, which first reported the talks, said OpenAI plans to use Amazon’s Trainium chips, which compete with chips from Nvidia and Google, and added that the Amazon funding could lead to a broader round of fundraising with other investors.
OpenAI is also looking to sell an enterprise version of ChatGPT to Amazon, but it is unclear whether the deal includes provisions to integrate ChatGPT features, such as shopping features that Amazon is developing for its own apps, the report said.