Amazon.com Inc (NASDAQ:AMZN) is in talks to invest as much as $10 billion in OpenAI and provide the artificial intelligence startup with access to its own AI chips, according to reports.
The proposed investment, first reported by The Information, would deepen ties between two of the most influential players in artificial intelligence and underscore the increasingly interconnected nature of major AI partnerships, a structure that has drawn heightened investor scrutiny.
OpenAI has been backed by Microsoft since 2019, but the companies recently adjusted the terms of their partnership to allow OpenAI to pursue additional funding sources as it scales its computing needs and expands commercial offerings.
Under the discussions, Amazon could offer OpenAI access to its Trainium AI chips, potentially tying the investment to the use of Amazon’s cloud infrastructure, CNBC reported.
Analysts at Wedbush said Amazon’s reported interest in OpenAI would be a positive development for the broader AI ecosystem if a deal is finalized.
“Our quick take is that Amazon's investment is the more important piece of news for the broader AI complex (assuming a deal materializes) given we see the CSP's as best positioned to understand AI's potential (or lack thereof) vs. a financial entity (like Blue Owl),” Wedbush analysts wrote in a note.
The analysts added that while funding activity in the AI sector has delivered mixed signals recently, strategic investments by major cloud service providers carry greater significance than financing led by purely financial players, particularly as capital intensity and infrastructure risks around large-scale data center projects come into sharper focus.