Photo Credit:Associated Press
Amazon is in discussions to invest roughly $10 billion in OpenAI, a deal that could value the artificial intelligence company at more than $500 billion, according to a source familiar with the matter. The talks are ongoing and remain fluid, with no final terms agreed, the source said.
If completed, the investment would mark one of the largest single commitments yet in the rapidly expanding AI sector and further highlight the enormous capital required to develop advanced artificial intelligence systems. Companies across the technology industry are racing to secure computing power, talent, and data as competition intensifies.
Amazon’s potential funding would come amid OpenAI’s broader efforts to diversify its partnerships following a major restructuring earlier this year. OpenAI transitioned from its non-profit origins to a public benefit corporation structure, a move that loosened restrictions on its ability to raise capital and pursue strategic alliances beyond Microsoft, its longtime partner.
The restructuring allows OpenAI to pursue funding from multiple sources while remaining overseen by a non-profit entity with a stake in the company’s financial success. That shift has opened the door to large-scale investments from companies seeking both influence and access to cutting-edge AI technology.
The talks also come as OpenAI lays groundwork for a possible initial public offering, which Reuters previously reported could value the company at up to $1 trillion. Any Amazon investment could strengthen OpenAI’s balance sheet ahead of such a move while reinforcing Amazon’s position in the AI infrastructure race.
Earlier this year, OpenAI signed multibillion-dollar agreements with firms including Nvidia and Oracle to secure chips and cloud computing capacity. In November, OpenAI also reached a $38 billion deal with Amazon for cloud services, underscoring an already deepening commercial relationship between the two companies.
Amazon, which has been developing its own AI chips to reduce reliance on external suppliers, could integrate those processors into a broader OpenAI partnership as part of the proposed investment, according to people familiar with the discussions.
Despite heavy spending across the industry, some investors remain cautious, watching closely for signs that AI demand may cool or that returns could fall short of expectations. For now, however, the scale of the talks signals continued confidence in AI’s long-term growth and strategic importance.
