OpenAI is reportedly in preliminary discussions to raise at least $10 billion from Amazon, according to a report by Bloomberg, following an initial report by The Information.
According to a source familiar with the private discussions, OpenAI could be valued at over $500 billion in a deal that would also involve the company using Amazon’s own Trainium AI chips. However, the source noted that these talks are still in the early stages and the final terms could change.
For years, OpenAI has been almost entirely reliant on Nvidia’s GPUs (rented via Microsoft Azure). The development would be a major victory for Amazon’s growing semiconductor business and strengthen OpenAI’s ties to Amazon Web Services (AWS), making it less dependent on Microsoft Azure and helps OpenAI move away from its total reliance on Nvidia GPUs.
In a move that signaled the end of its exclusive reliance on Microsoft, OpenAI recently committed to a $38 billion partnership with AWS.