Amazon Eyes $10B Investment in AI Powerhouse OpenAI

Amazon.com Inc is in talks to make a substantial $10 billion investment in OpenAI. This potential deal underlines the growing demand for AI computing power and signals OpenAI's strategic partnerships. The discussions are still fluid, coinciding with OpenAI's possible IPO valued at up to $1 trillion.

Amazon.com Inc is in discussions to potentially invest $10 billion in OpenAI, a partnership that could significantly boost the artificial intelligence firm's market value beyond $500 billion, according to a source familiar with the matter.

This potential investment reflects the mounting demand for AI and computing power, as companies strive to develop systems capable of rivaling human intelligence. Firms like Nvidia and Oracle have already engaged in significant AI-related partnerships with OpenAI this year, underscoring the sector's rapid expansion.

The negotiations take place as OpenAI prepares for a possible initial public offering, potentially valuing the company at $1 trillion. Amazon, OpenAI, and Microsoft have not commented on the discussions, but reports suggest Amazon may use its Trainium chips in collaborating with OpenAI.

(With inputs from agencies.)