OpenAI Seeks $10 Billion Investment from Amazon

OpenAI is reportedly in negotiations with Amazon for a potential $10 billion deal that could significantly increase its valuation beyond $500 billion. If successful, OpenAI may utilize Amazon’s Trainium chips to enhance its AI capabilities, further attracting investor interest in future funding rounds. Amid concerns of an AI bubble similar to the dot-com era, investor enthusiasm appears to be waning, prompting some to seek alternative opportunities if tech giants fail to show profitability. Earlier this year, OpenAI, Oracle, and SoftBank launched a $500 billion project called Stargate to build data centers across the U.S. to accommodate rising AI computing demands. Additionally, NVIDIA is set to invest $100 billion into OpenAI to support new data center construction. OpenAI’s recent transition into a Public Benefit Corporation allows greater flexibility in raising capital and pursuing independent AI developments, as confirmed by Microsoft AI CEO Mustafa Suleyman.

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