OpenAI is engaging in preliminary discussions with Amazon regarding a potential investment exceeding $10 billion, aimed at adopting Amazon’s Trainium chips as part of a strategic move to expand in artificial intelligence. This potential deal could elevate OpenAI’s valuation to over $500 billion, following a significant restructuring that allows for greater partnerships and capital-raising opportunities. Amazon is also exploring its own AI strategy, having already invested $8 billion in AI competitor Anthropic. The investment talks highlight OpenAI’s urgent need for capital to support its computing costs, as it commits over $1.4 trillion to infrastructure, including partnerships with chipmakers like Nvidia. Analysts caution about potential market bubbles in these ventures. Overall, a successful deal could solidify OpenAI’s leading role in the AI landscape, especially given its ambitions for an initial public offering valued at up to $1 trillion. As negotiations progress, both companies have yet to comment publicly on the discussions.
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