Amazon is in discussions to invest more than $10bn (£7.5bn) in OpenAI, the startup behind ChatGPT, according to The Information. The deal would boost OpenAI's valuation above $500bn and help fund its massive spending on datacentre capacity from Amazon Web Services (AWS) and other cloud providers.
OpenAI has committed to spending $38bn on AWS capacity over seven years, and plans to use Amazon's Trainium chips, competing with Nvidia and Google. The investment could lead to a broader fundraising round with other investors.
OpenAI's total spending on compute power over the next eight years is projected at $1.4tn, far exceeding its $13bn annual revenues. The lossmaking company has converted to a for-profit corporation and is considering an initial public offering that could value it at up to $1tn.
Other deals this year include Oracle's $300bn datacentre buildout and a cash-for-chips agreement with Nvidia. OpenAI also hired former UK chancellor George Osborne to broker national-level AI projects.
The talks reportedly include selling a corporate version of ChatGPT to Amazon. OpenAI declined to comment; Amazon has been approached for comment.
