Amazon negotiates a $10 billion investment in OpenAI
In the global race for artificial intelligence, the next major deal might be on the horizon. According to media reports, OpenAI is in talks with Amazon about a funding of at least ten billion US dollars. The background is the rapidly increasing computing costs of the AI company. The reaction of Amazon's stock on the stock exchange was initially muted.
Talks on Double-Digit Billion Investment
As the US media The Information reports, citing people familiar with the negotiations, OpenAI is currently in talks with Amazon about a significant equity stake. The volume is expected to be at least ten billion US dollars. The aim of the financing is to cover the rapidly growing costs of computing power and infrastructure associated with the operation and further development of large AI models.
CNBC also confirms corresponding talks, but points out that no final agreements have been made yet. Individual sources even consider an investment above the ten-billion-dollar mark possible.
Valuation of Over 500 Billion Dollars in Space
If financing of this magnitude were to materialize, OpenAI could be valued at more than $500 billion. Such a valuation would finally catapult the company into the elite group of the most valuable technology companies worldwide. However, there are no official statements yet on the target valuation or the exact structure of a possible deal.
Both Amazon and OpenAI declined to comment on the ongoing talks.
Strategic Importance for Amazon's AI Ecosystem
According to information from Bloomberg, technological cooperation is also being discussed in the negotiations. Accordingly, OpenAI could increasingly rely on Amazon's own Trainium chips in the future. For Amazon, this would be a strategic success: The still young semiconductor division is considered a central component of the company's AI strategy.
Although Amazon Web Services (AWS) is a leader in the cloud infrastructure market, it has so far struggled to assert this dominance with AI developers. A prominent customer like OpenAI could significantly strengthen AWS's position in the AI ecosystem. According to Bloomberg, the talks between the two companies are said to have begun in October.
OpenAI uses new freedoms in capital raising
The negotiations follow a strategic reorganization at OpenAI in the fall. In October, the company announced details of the revised partnership with Microsoft. Since then, OpenAI has had greater freedom in selecting infrastructure partners and investors.
Since 2019, Microsoft has invested more than $13 billion in OpenAI, but apparently no longer holds exclusive rights to provide computing power. This opened the way for OpenAI to collaborate with other technology companies.
Intense competition for AI infrastructure
The possible deal is part of a broader investment race. Amazon is already involved with at least eight billion US dollars in OpenAI competitor Anthropic, in which Microsoft and Nvidia also hold shares. OpenAI itself recently secured extensive infrastructure commitments, including from Nvidia, AMD, and Broadcom, as well as a first major contract with AWS worth 38 billion US dollars.
Amazon stock hardly reacts
The report initially did not cause major fluctuations on the stock exchange. The Amazon stock fell 0.21 percent to $222.10 in after-hours trading on the NASDAQ. Investors seem to classify the possible negotiations as a strategic option so far, without expecting short-term impacts on the valuation.
Whether a billion-dollar deal will actually result from the talks is likely to be decided in the coming weeks. However, one thing is clear: the competition for capital, computing power, and technological supremacy in the AI sector continues to gain momentum.
