Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: Amazon is in preliminary discussions to invest tens of billions of dollars in OpenAI, with the potential deal reaching as high as $50 billion, according to a source familiar with the matter. If completed, the investment would make Amazon the largest contributor to OpenAI’s current fundraising round.
The negotiations are still in their initial stages, and critical conditions are yet to be agreed upon. The move underscores more and more rivalry between Big Tech companies and international investors to establish a closer relationship with OpenAI, as the need for infrastructure for AI products is increasing, and firms are scrambling to acquire an advantage in the rapidly expanding AI industry.
Amazon CEO Andy Jassy is allegedly negotiating with the OpenAI chief and founder, Sam Altman. An investment of $50 billion would put Amazon at the forefront of other prospective investors in the current capital raise of OpenAI. Amazon is already heavily invested in the AI industry and has already invested approximately $8 billion in Anthropic, which is one of the major competitors of OpenAI.
Enterprise customers have been keen on Anthropic, and the company has recently estimated that its run rate of annualised revenue can increase more than twofold, and potentially almost threefold, by 2026 to an approximate of $26 billion.
Earlier reports show that OpenAI is trying to get up to $100 billion, which would give it a valuation of approximately $830 billion. The firm is also setting a path to an eventual initial public offering that would help to value the company near 1 trillion.
The startup has been spending heavily on data centres and recently signed a $10 billion computing agreement with AI chipmaker Cerebras. These investments reflect the enormous infrastructure demands behind training and running advanced AI models.
Other major players are also circling OpenAI. Nvidia, Amazon, and Microsoft are collectively in talks to invest up to $60 billion, according to separate reports. Nvidia is said to be considering an investment of up to $30 billion, while Microsoft, a long-time OpenAI partner, is exploring a smaller commitment of under $10 billion.
Amazon declined to comment on the discussions, and OpenAI did not immediately respond to requests for comment.
