Amazon Eyes $10 Billion Stake in OpenAI as Valuation Soars

Amazon is in talks to invest $10 billion in OpenAI, potentially valuing the artificial intelligence firm at over $500 billion. This comes as OpenAI prepares for a possible IPO, aiming for a $1 trillion valuation. The deal highlights OpenAI's expanding partnerships and strategic positioning in the AI sector.

Amazon.com Inc is reportedly in discussions to make a significant investment in OpenAI, the creators of ChatGPT, with the potential deal valuing the AI company at over $500 billion.

This strategic move comes as OpenAI lays groundwork for a prospective initial public offering (IPO) that could see the company's valuation reach up to $1 trillion, as indicated by recent reports.

The discussions with Amazon highlight OpenAI's transition from a non-profit to a public benefit corporation, expanding its capital and resource acquisition capabilities. Microsoft, which holds a 27% stake, has an exclusive right to sell OpenAI models to its cloud customers.

(With inputs from agencies.)