OpenAI is in talks with Amazon about a major collaboration that could include investment and the use of Amazon’s AI chips. According to CNBC and The Information, while talks are still progressing and terms have yet to be finalized, the investment amount may exceed $10 billion.
The proposed acquisition is an important milestone for OpenAI, which is also currently seeking to diversify its funding sources and partners for its technology beyond any one particular company.
These talks come close on the heels of a large-scale restructuring exercise that OpenAI concluded in October. As a result of this restructuring, it has been clarified that the partnership between OpenAI and Microsoft, which has already invested over $13 billion in the AI giant, will help it advance its goals.
Through the new model, Microsoft will act as a major partner; however, OpenAI will be able to easily raise funds from other investors as it engages with other technology suppliers. This means the company will be able to partner with Amazon in fields such as cloud infrastructure.
For Amazon, a larger alliance with OpenAI could increase its influence in the rapidly expanding generative AI market. The company has already invested at least $8 billion in Anthropic, which is currently one of OpenAI's biggest rivals. Amazon has also been marketing its alternative to NVIDIA’s dominating series of AI chips.
Collaboration between Amazon and OpenAI would give Amazon a high-profile customer for its AI infrastructure and could positively impact the adoption of its chips and AWS services.
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The latest developments show a competitive race among big tech giants to form partnerships in artificial intelligence. Microsoft has recently announced that it will invest up to $5 billion in Anthropic, whereas NVIDIA plans to invest up to $10 billion in AI firms.
OpenAI itself has made major infrastructure deals over the last several months, totaling over $1.4 trillion, including deals with NVIDIA, AMD, and Broadcom.
It has recently signed its first major deal with AWS, committing to spend $38 billion on cloud services. Together, these actions illustrate a momentum that marks the emergence of access to capital, chips, and computing power as a key factor in the next wave of competition in global AI.