OpenAI and Amazon Discuss $10 Billion AI Investment Plan

OpenAI is in discussions with Amazon about a possible large investment and an agreement to use Amazon’s artificial intelligence chips, according to people familiar with the matter. The talks are still private, and the final terms have not been decided yet, but the investment could be more than $10 billion. If completed, the deal would mark one of the biggest partnerships in the fast-growing artificial intelligence industry.

These discussions come shortly after OpenAI completed a major restructuring in October. This change allowed the company to raise money more freely and work with a wider range of partners across the AI industry. Earlier, OpenAI was closely tied to one main partner, but the new structure gives it greater independence to choose cloud providers, chip makers, and strategic investors.

For several years, Microsoft has been OpenAI’s strongest supporter, investing more than $13 billion since 2019. However, under the new agreement announced in October, Microsoft no longer has the first right to provide computing power to OpenAI. This shift has opened the door for other major technology companies to step in and form partnerships with the AI firm.

Amazon already has strong interests in artificial intelligence and has invested billions of dollars in Anthropic, one of OpenAI’s main competitors. A potential deal with OpenAI would further strengthen Amazon’s position in the booming generative AI market. Through Amazon Web Services, the company has been building its own AI chips, including Inferentia and the latest Trainium processors, to support large AI models.

AI hardware has become a key focus as demand for computing power continues to rise. OpenAI has made huge infrastructure commitments in recent months, signing agreements with major chip companies such as Nvidia, along with AMD and Broadcom. Last month, OpenAI also signed its first major cloud capacity deal with AWS, agreeing to purchase billions of dollars’ worth of computing services.

In addition to infrastructure expansion, OpenAI finalized a $6.6 billion secondary share sale in October. This deal allowed current and former employees to sell shares and valued the company at around $500 billion. The strong valuation highlights growing investor confidence in OpenAI’s future and shows how competition among global tech giants for leadership in artificial intelligence is rapidly intensifying.