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Amazon Allegedly Negotiating $10B Investment in OpenAI Amid Rising Interest in Circular Deals

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OpenAI CEO Sam Altman Testifies In Senate Commerce Committee Hearing On The AI Race

Amazon is in potential talks to invest up to $10 billion in OpenAI, valuing the AI startup at over $500 billion. This deal would enable OpenAI to utilize Amazon’s AI chips, enhancing its technological capabilities. Amazon, which has already invested $8 billion in AI competitor Anthropic, is diversifying its investments in the rapidly growing AI sector. This follows OpenAI’s recent transition to a for-profit model, allowing it greater freedom to form partnerships beyond its early backer, Microsoft. The proposed investment aligns with a trend in the tech industry where major cloud providers collaborate with emerging AI companies to optimize resources. Previously, OpenAI engaged in strategic investments, including a $350 million stake in CoreWeave and a 10% equity stake in AMD. A deal with Amazon would further solidify OpenAI’s infrastructure through access to Amazon Web Services and its advanced chip technology. Both companies have not yet commented on the discussions.

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