Amazon Eyes Investment in OpenAI, Targeting $500 Billion Valuation
Amazon.com Inc is reportedly in talks to invest in OpenAI, the creator of ChatGPT, in a potential agreement that could place the valuation of the artificial intelligence firm at more than $500 billion, according to a source. The potential deal emerges as OpenAI prepares for an initial public offering that may value the company at as much as $1 trillion, according to a report in October. Amazon is considering an investment of approximately $10 billion in OpenAI, although discussions between the two companies are described as “very fluid,” according to a source.
The approach underscores OpenAI’s capacity to forge extensive partnerships following its transition from non-profit origins and the conclusion of its agreement with Microsoft, according to the source. The Microsoft deal transformed OpenAI into a public benefit corporation governed by a non-profit that has a vested interest in OpenAI’s financial success, eliminating significant limitations on the company’s capacity to attract capital and obtain computing resources. Microsoft possesses a 27 per cent stake in OpenAI and has obtained an exclusive right to market OpenAI models to its cloud clientele.
The Information, which initially disclosed the discussions with Amazon, reported that OpenAI intends to utilize Amazon’s Trainium chips, which are in competition with those from Nvidia and Google. OpenAI and Microsoft have yet to provide a response regarding the Information report. The Amazon financing may open the door for a more extensive fundraising round that could include other investors, according to the Information.
OpenAI is reportedly exploring the possibility of selling an enterprise version of ChatGPT to Amazon. However, the specifics of the deal remain uncertain, particularly regarding whether it encompasses the integration of ChatGPT features, including the AI-powered shopping functionalities that Amazon is currently developing for its own applications, according to the report.
