Amazon Eyes $50 Billion Investment in OpenAI
Amazon.com Inc. is reportedly in discussions to invest up to $50 billion in OpenAI and to broaden an existing agreement related to providing computing power to the AI startup, as stated by a source. According to the source, OpenAI is considering an arrangement where Amazon would integrate the startup’s artificial intelligence models, which drive the widely-used ChatGPT chatbot, into its products and platforms. Employees at Amazon could also utilize the model for their professional tasks. “If the negotiations come to fruition, Amazon would contribute as much as half of a fresh funding round that could total up to $100 billion,” said the person, asking not to be identified because discussions are private. Sources indicate that other parties engaged in discussions to participate in the round include Nvidia Corp. and SoftBank Group Corp. The round remains open, and the specifics may evolve.
The negotiations reflect OpenAI’s significant position as a consumer of cloud services and the substantial expenses associated with developing AI tools. This situation has prompted Chief Executive Officer Sam Altman to pursue investments from prominent Silicon Valley companies, competing technology developers, and sovereign wealth funds globally. An investment of that magnitude from Amazon would strengthen the ties between OpenAI and the e-commerce behemoth, which has historically supported OpenAI’s competitor, Anthropic. This would represent yet another instance of a circular financing arrangement involving a prominent AI startup and a provider of chips and cloud computing services.
It is reported that $50 billion figure, noting that Amazon Chief Executive Officer Andy Jassy is at the forefront of the negotiations with Altman. OpenAI is pursuing up to $100 billion in new capital from investors, according to the sources. The company is also preparing for an initial public offering in the fourth quarter of 2026, with executives privately expressing concern that Anthropic could go public first.
It is previously reported that OpenAI was in discussions to secure funding from Amazon and utilize the company’s chips, as well as to raise up to $30 billion from existing supporter SoftBank. Altman has been engaging with leading investors in the Middle East for a fundraising round that may value the ChatGPT maker at up to $830 billion.
