Amazon in early talks to invest up to $50 billion in OpenAI

Amazon is in early-stage discussions to make a massive investment in OpenAI that could run into tens of billions of dollars, underscoring intensifying competition among global technology giants to secure strategic positions in artificial intelligence.

The talks could see Amazon commit as much as $50 billion to the ChatGPT maker, though the final amount has not been determined and negotiations remain preliminary, as per a report by Reuters citing a source familiar with the matter.

OpenAI is currently seeking to raise up to $100 billion in fresh capital at a valuation estimated at around $830 billion, as it ramps up spending on data centres and computing infrastructure. The AI company has also been laying the groundwork for a future initial public offering that could value it at close to $1 trillion.

Also read: OpenAI explores biometric-based social network to tackle bot problem

Amazon CEO Andy Jassy is personally leading the discussions with OpenAI chief executive Sam Altman, according to earlier media reports. A commitment of this scale would position Amazon as the single largest investor in OpenAI’s ongoing fundraising round.

The move comes as major technology firms and global investors race to deepen their ties with OpenAI in a bid to gain an advantage in the rapidly evolving AI landscape. SoftBank Group is also in talks to invest up to an additional $30 billion in the company.

Amazon already has significant exposure to the AI sector through its investment in Anthropic, into which it has poured roughly $8 billion. Anthropic, now valued at about $183 billion, has emerged as a major OpenAI rival and expects its annualised revenue to more than double, and potentially nearly triple, in 2026.

Also read: Microsoft’s OpenAI bet drives $7.6 billion profit jump as Azure AI revenue surges

Other industry heavyweights are also exploring investments in OpenAI. Nvidia, whose chips power many of OpenAI’s models, is reportedly in discussions to invest up to $30 billion, while Microsoft, a long-time OpenAI backer, is considering a smaller investment of under $10 billion.