The proposed investment could value OpenAI at over $500 billion. Amazon’s investment is expected to be around $10 billion, though the exact size and structure of the deal may change. In October, OpenAI completed a $6.6 billion secondary share sale, allowing employees and former staff to sell shares at a valuation near $500 billion.
Background: Restructuring and Microsoft Relationship
The discussions follow OpenAI’s restructuring completed in October, which modified its existing arrangements with Microsoft. Microsoft, which has invested over $13 billion since 2019 and holds a 27% stake, no longer has the right of first refusal to act as OpenAI’s sole provider of computing capacity.
Focus on Cloud Infrastructure
Access to computing infrastructure is central to the talks. Amazon Web Services (AWS) has been developing its own AI chips since 2015, including Inferentia (2018) and the latest Trainium chips. OpenAI may leverage these chips, which compete with Nvidia and Google offerings.
Recent Infrastructure Commitments
OpenAI has committed more than $1.4 trillion to infrastructure recently, including partnerships with Nvidia, AMD, and Broadcom. In November, it signed a $38 billion agreement to purchase cloud capacity from Amazon, marking its first major cloud contract with the company.
Wider AI Investment Landscape
Amazon has already invested at least $8 billion in Anthropic, a rival AI firm. Microsoft plans up to $5 billion investment in Anthropic, and Nvidia may invest up to $10 billion. OpenAI has also signed multiple multi-billion-dollar deals with companies like Nvidia and Oracle in 2025.
Summary:
Amazon is exploring a potential $10 billion investment in OpenAI, which could value the AI company at over $500 billion. The discussions focus on cloud infrastructure and computing capacity, following OpenAI’s recent restructuring and multi-billion-dollar deals with cloud and chip providers.
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