Amazon is reportedly in talks to invest around $10 million in OpenAI.

The deal could raise the value of the ChatGPT maker to more than $500 billion, Reuters reported, citing sources familiar with the matter.

Sources also described talks between the two tech giants as “fluid”.

The deal could potentially strengthen the relationship between Amazon and OpenAI at a time when pressure is mounting for tech firms to compete in the AI race.

The talks come after OpenAI last month agreed to a seven-year, $38 billion partnership with Amazon Web Services to run and scale its AI workloads, marking a significant shift in the start-up’s cloud strategy following a recent restructuring.

Under the agreement, OpenAI will gain immediate access to AWS infrastructure, including hundreds of thousands of Nvidia graphics processors clustered via Amazon EC2 UltraServers, with capacity targeted to be fully deployed by the end of 2026 and room to expand in 2027 and beyond.

The deal arrived as OpenAI pursues what the company’s chief executive Sam Altman has called a commitment to spend about $1.4 trillion on computing resources and develop 30 gigawatts of capacity, with recent contracts also involving Oracle, Broadcom, AMD, Nvidia, Google and Samsung.

In August, Nvidia and OpenAI unveiled a landmark strategic partnership, with the chipmaker investing up to $100 billion in OpenAI, supporting the development of at least 10 gigawatts of AI data centres powered by millions of Nvidia GPUs.

In September, the AI specialist also signed a contract to purchase $300 billion of computing capacity from Oracle over roughly five years starting in 2027.https://nationaltechnology.co.uk/OpenAI_And_Oracle_Strike_300bn_Cloud_Deal.php

The potential agreement between Amazon and OpenAI comes at a time when the ChatGPT maker may be in the midst of talks for an IPO that could value the company at up to £1 trillion, according to a report by Reuters in October.

In November, Microsoft disclosed that OpenAI’s losses were roughly $12 billion in the past quarter, while OpenAI signalled annualised revenue of about $13 billion, with Altman telling investor Brad Gerstner that the company makes “well more” than reported and that he is confident revenue will continue to grow.

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