Amazon in talks to invest $10 billion in OpenAI

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Amazon.com Inc. is in preliminary discussions to invest roughly $10 billion in OpenAI, the creator of ChatGPT, in a deal that could value the AI company at more than $500 billion. The potential investment comes as OpenAI lays the groundwork for a possible initial public offering (IPO) that some analysts expect could push its valuation up toward $1 trillion.

The talks — described as fluid and early‑stage — reflect Amazon’s ambitions to deepen its role in artificial intelligence and diversify beyond its traditional retail and cloud businesses. A significant portion of the discussions centers on OpenAI potentially using Amazon’s Trainium AI chips and AWS cloud infrastructure, a move that could challenge incumbent chip partners such as Nvidia and reinforce Amazon’s competitiveness in the AI hardware and services market.

As part of the negotiations, OpenAI is also reported to be exploring the sale of an enterprise version of ChatGPT to Amazon, though details around integration, pricing and timelines remain unclear. If completed, the partnership could mark one of the largest tech investments in generative AI outside of traditional backers like Microsoft, which currently holds a significant stake and cloud‑service exclusivity rights for OpenAI’s models.

Executives from both companies have remained publicly silent on the matter. However, industry observers say the talks underscore Amazon’s broader strategy to compete more directly with rivals in AI computing, services, and applications — especially as demand for large‑scale AI models continues to surge across enterprise and consumer segments globally.