Amazon is reportedly in talks to invest $10 billion in OpenAI as carousel deals continue to become popular

Amazon is in early discussions to invest up to $10 billion in OpenAI in a deal that would see the AI ​​lab use the e-commerce giant’s AI chips. CNBC I mentioned.

If implemented, the deal would value OpenAI at more than $500 billion, Bloomberg reported I mentionedciting an anonymous source.

Amazon is looking to diversify its bets in the AI ​​race, which has so far seen it partner and invest $8 billion in Anthropic, a competitor to OpenAI. Earlier this month, the e-commerce giant also unveiled its latest version Trainium series of chipsand outlined the development of the next batch of these chips, to complement cloud computing offerings via Amazon Web Services.

News of the deal comes two months later OpenAI has completed its transition to a for-profit modelwhich gives it more freedom to strike deals with investors other than Microsoft, which is one of the company’s early backers with a 27% stake.

Amazon’s investment in OpenAI will be the latest in a series of investments Circular deals In the AI ​​space – major hardware manufacturers and cloud service providers are making deals with young AI companies to use their products, while startups are committing to using their own data centers and chips to train their AI models.

Last March, OpenAI invested $350 million in equity in CoreWeave, which used the money to buy chips from its backer Nvidia. These same chips provide compute for OpenAI, increasing CoreWeave’s revenue and ultimately making OpenAI’s share more valuable. Then in October, OpenAI signed a deal to acquire a 10% stake in AMD and Committed to using the chip maker’s AI GPUsAnd he also signed SIM card usage agreement with Broadcom that month. In November, the maker signed ChatGPT $38 billion cloud computing deal with Amazon.

OpenAI and Amazon did not immediately respond to requests for comment.