Amazon Eyes Up to $50 Billion Investment in OpenAI

Amazon has joined the intensifying race among Big Tech firms to deepen ties with OpenAI, as global technology leaders seek a competitive edge in the rapidly evolving artificial intelligence landscape, according to Reuters report. 

Investment Talks and Valuation Ambitions 

Amazon is in preliminary discussions to commit a significant investment to OpenAI, with the amount potentially reaching $50 billion, according to a source cited by Reuters. The proposed figures are still under negotiation.  

OpenAI is seeking to raise up to $100 billion in fresh funding, which could value the company at approximately $830 billion. In parallel, SoftBank Group Corp is also reported to be in talks to invest as much as an additional $30 billion in the ChatGPT developer. 

As reported by the Wall Street Journal, the discussions are being led by Amazon CEO Andy Jassy and OpenAI CEO Sam Altman. A commitment of up to $50 billion would position Amazon as the largest contributor in OpenAI’s current fundraising round.  

OpenAI continues to face rising costs related to training and deploying its artificial intelligence models, alongside intensifying competitive pressure from Alphabet’s Google. 

Other Investors and Long-Term Plans 

Other major players are also in discussions. Nvidia, an existing investor whose chips power OpenAI’s models, is reportedly considering an investment of up to $30 billion, while Microsoft, a long-time backer, is in talks to invest less than $10 billion. 

OpenAI recently signed a $10 billion computing deal with Nvidia rival Cerebras and is laying groundwork for a potential IPO that could value the company at up to $1 trillion. 

Read More: SoftBank Eyes Additional $30 Billion Investment in OpenAI! 

Conclusion  

The discussions highlight how strategic control over advanced AI has become critical for global technology leaders. With Amazon, Microsoft, Nvidia and SoftBank exploring large investments, OpenAI’s funding round reflects both soaring costs and confidence in its long-term dominance, including potential IPO ambitions. 

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