OpenAI in talks to obtain $10 Billion investment from Amazon: Sources

OpenAI, the firm behind the ChatGPT service, is reportedly in advanced talks with Amazon to secure a massive funding boost of at least $10 billion. The potential investment, first revealed by The Information, comes with a significant condition: OpenAI would commit to using Amazon’s custom-built artificial intelligence chips.

This funding round is set to be one of the largest in tech history, potentially pushing the valuation of the AI developer past a colossal $500 billion mark. The discussions highlight the immense capital requirements needed to power large language models, whilst also demonstrating continued strong investor confidence in the future of artificial intelligence.

A crucial element of the deal centres on Amazon Web Services (AWS) and its in-house designed chips, known as Trainium. If the agreement goes ahead, it would be a substantial victory for Amazon as it attempts to break the dominance of rival chipmaker Nvidia in the market for AI hardware. Although OpenAI has a massive, multi-billion-dollar commitment to rent servers from AWS over the next seven years, its current infrastructure relies heavily on Nvidia’s GPUs. Shifting to Trainium would signal a major diversification of its compute resources.

For OpenAI’s chief executive and his team, the cash injection is vital. The company is spending billions on data centres and compute power to train and run its flagship models. The funds from Amazon would help to secure its financial position and cover the steep costs associated with its expansion. Ultimately, this arrangement would tightly link the two technology giants, guaranteeing a long-term partnership in the high-stakes global race for AI supremacy.