Amazon.com Inc is reportedly planning a major investment of about $10 billion in OpenAI, in a potential deal that could value the artificial intelligence company at more than $500 billion.
Sources familiar with the discussions said the talks remain fluid and are subject to change, noting that the matter is private. If concluded, the investment would further underscore the intense competition among technology giants to secure access to advanced AI systems and the vast computing power required to develop them.
The possible deal highlights the AI sector’s surging demand for infrastructure, as companies race to build technologies capable of rivaling or surpassing human intelligence. This year alone, OpenAI has secured multi-billion-dollar AI-related agreements, including major partnerships with chipmaker Nvidia. In November, the company also signed a $38 billion agreement to purchase cloud computing services from Amazon.
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Despite the rapid growth, investors remain cautious, watching closely for signs that demand for AI could slow or that heavy spending may fail to deliver expected returns.
The discussions come as OpenAI prepares the groundwork for a potential initial public offering, which could value the company at up to $1 trillion. The move reflects OpenAI’s increasing flexibility to partner broadly following its transition away from its original non-profit structure and the restructuring of its relationship with Microsoft.
Under its revised arrangement, OpenAI operates as a public benefit corporation controlled by a non-profit entity that retains a financial stake in the company. This structure has eased previous limitations on raising capital and securing computing resources. Microsoft, which owns a 27 per cent stake in OpenAI, also holds exclusive rights to sell OpenAI’s models to its cloud customers.
