Amazon is considering investing more than $10 bil in OpenAI

The Information claims that Amazon is negotiating a possible $10 billion investment in OpenAI, which would put the AI leader's valuation above $500 billion. The deal may also include a pledge to employ Amazon's Trainium AI chips.

The specifics:

Last month, the two businesses struck a $38 billion, seven-year AWS cloud contract. As a result, OpenAI now has partnerships with "at least" five cloud providers.

Amazon's Trainium processors would be used by OpenAI, providing AWS with a prominent client for chips that compete with Nvidia.

Additionally, the firms have talked about enterprise collaborations and commerce, with OAI continuing to market ChatGPT as a place for users to shop.

With the flexibility to seek rival cloud providers for significant infrastructure requirements, the reorganization that released OAI from Microsoft exclusivity is paying off. In addition to acquiring a significant customer for Trainium processors, which have struggled to gain momentum against Nvidia's dominance, the purchase would help Amazon hedge its Anthropic risk.

Amazon is considering investing more than $10 billion in OpenAI