Amazon.com Inc is in early discussions to invest about US$10 billion in OpenAI, the creator of ChatGPT, in a move that would deepen ties between one of the world’s largest tech companies and the leading artificial intelligence developer. The talks are ongoing and remain at a preliminary stage, with terms still fluid and subject to change as negotiations continue.
The proposed investment could value OpenAI at more than US$500 billion, according to people familiar with the matter, reflecting immense investor confidence in the future of advanced AI platforms. The discussions come as OpenAI prepares for a possible initial public offering (IPO) that could further boost its valuation toward the $1 trillion mark touted by some analysts.
A central feature of the talks is a potential strategic link to Amazon’s custom AI chips, known as Trainium, which are designed to power large-scale machine learning models. OpenAI is expected to adopt these chips if the deal goes forward, providing a major win for Amazon’s semiconductor efforts and potentially lowering compute costs compared with alternatives.
The discussions underline how compute power and infrastructure capacity are central to the AI race. OpenAI already has major cloud and hardware commitments with other technology companies. In November 2025, OpenAI signed a US$38 billion multi‑year agreement with Amazon Web Services (AWS) for cloud services, providing access to extensive computing resources necessary to train and run large models.
OpenAI’s shift from its original non‑profit roots to a public benefit corporation has given it greater flexibility to pursue new investment sources beyond its early backer Microsoft, which currently holds a 27% stake and has exclusive rights to sell OpenAI’s models on its cloud. The transition has enabled broader partnerships with infrastructure providers and hardware suppliers as OpenAI seeks to secure the vast computing resources required for next‑generation AI developments.
Industry observers note that such large investments reflect not only confidence in OpenAI’s technology but also the increasing interdependence between AI developers and infrastructure providers. Deals that tie capital investment to compute partnerships, sometimes referred to as “circular deals”, have raised discussion among analysts over market concentration and long‑term sustainability, even as they accelerate innovation in the sector.
If finalised, Amazon’s investment would position it as a more significant player in the AI landscape, competing with other major tech companies for influence over the future of AI development. Both Amazon and OpenAI have declined to comment on the ongoing discussions.
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