OpenAI is in talks with Amazon regarding a potential funding and an arrangement to utilize its AI chips, CNBC confirmed on Tuesday.
The specifics are dynamic and subject to modification but the investment could surpass $10 billion, according to a source familiar with the situation who requested anonymity due to the confidential nature of the discussions. The Information initially reported on the potential agreement.
The negotiations follow OpenAI’s completion of a reorganization in October and the formal presentation of its partnership details with Microsoft, providing it increased flexibility to seek funds and collaborate with entities across the wider AI landscape.
Microsoft has poured over $13 billion into OpenAI and has supported the organization since 2019, but it no longer possesses the right of first refusal as OpenAI’s compute supplier, based on an October statement. OpenAI can also develop specific products in association with other companies.
Amazon has allocated a minimum of $8 billion to OpenAI competitor Anthropic, yet the retail giant may be aiming to broaden its investment in the thriving generative AI sector. Microsoft has taken a similar initiative and declared last month that it will invest up to $5 billion in Anthropic, while Nvidia plans to invest up to $10 billion in the startup.
Amazon Web Services has been formulating its own AI chips since approximately 2015, and the hardware has proved essential for AI firms attempting to train models and satisfy the rising demand for computational power. AWS introduced its Inferentia chips in 2018, and the newest generation of its Trainium chips was revealed earlier this month.
OpenAI has committed more than $1.4 trillion to infrastructure in recent months, including partnerships with chip manufacturers Nvidia, Advanced Micro Devices and Broadcom. Last month, OpenAI finalized a contract to procure $38 billion worth of capacity from AWS, marking its first agreement with the cloud infrastructure leader.
In October, OpenAI concluded a secondary share transaction amounting to $6.6 billion, enabling both current and former employees to liquidate shares at a $500 billion valuation.
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