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Amazon looking to invest $50 billion in OpenAI

OpenAI also in talks with Middle Eastern sovereign wealth funds, Nvidia, Microsoft, and SoftBank.

OpenAI, already valued at $500 billion, has announced plans to raise an additional $100 billion in funding, which could increase its valuation to $830 billion.

Reports from the Wall Street Journal suggest that Amazon may contribute at least $50 billion to this round, with CEO Andy Jassy leading negotiations with OpenAI CEO Sam Altman.

While details of the deal are limited, OpenAI has also been in talks with Middle Eastern sovereign wealth funds, Nvidia, Microsoft, and SoftBank. The funding round is expected to close by the end of the first quarter.

The potential Amazon-OpenAI partnership is particularly notable because Amazon is a major investor in Anthropic, a direct competitor of OpenAI.

Amazon Web Services is Anthropic’s main cloud and training provider, with at least $8 billion invested, and the company recently opened an $11 billion data center in Indiana dedicated to running Anthropic’s AI models.

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