OpenAI, the creator of ChatGPT, is reportedly in early talks with Amazon.com Inc. for a massive funding and technology partnership. The potential deal is centered around Amazon investing at least $10 billion in OpenAI and OpenAI agreeing to adopt Amazon’s in-house AI chips, known as Trainium, as reported by Bloomberg.
This strategic move would significantly broaden Amazon’s footprint in the competitive artificial intelligence sector, positioning it to challenge the market dominance of current chip leader Nvidia Corp.
News of the talks put Amazon’s shares in focus, with the stock trading 0.79% higher in pre-market session on Wednesday.
The Amazon stock closed nearly flat at $222.56 on Tuesday.
The deal could value OpenAI above $500 billion, though discussions are in the initial stages and terms could shift, the Bloomberg report said.
For Amazon, securing OpenAI’s adoption of its Trainium chip would be a major victory for its semiconductor division, especially as major developers like Meta Platforms Inc. begin exploring alternatives to Nvidia’s specialized AI hardware.
