Prime Highlight
- Amazon and OpenAI are discussing a potential investment of up to $50 billion, which could rank among the largest private AI deals ever.
- The move is notable as Amazon already has major financial and cloud ties with Anthropic, a key OpenAI rival.
Key Facts
- Amazon CEO Andy Jassy and OpenAI CEO Sam Altman are holding direct talks, with a term sheet possibly finalized in the coming weeks.
- OpenAI’s valuation reached $500 billion in October, and its current fundraising round could total about $100 billion.
Background
Amazon is in talks to invest as much as $50 billion in OpenAI, according to people familiar with the matter, marking a major potential move in the fast-growing artificial intelligence space. CNBC confirmed the discussions, which could become one of the largest private investments ever made in an AI company.
Sources said Amazon CEO Andy Jassy and OpenAI CEO Sam Altman are holding direct discussions. While the talks are active, the final investment amount has not been fixed and may change before an agreement is signed. A term sheet could be finalized within the next few weeks, depending on how negotiations progress. Amazon has declined to comment on the discussions.
OpenAI is also speaking with several other investors as part of a broader fundraising effort. The total funding round could reach around $100 billion and may close in stages. Strategic partners such as Amazon, Microsoft, and Nvidia are expected to invest first, followed by financial backers. SoftBank is reportedly in talks to invest up to $30 billion in the company.
OpenAI started in 2015 as a nonprofit research lab. In 2022, it gained global attention by launching ChatGPT. Since then, the company has grown quickly into a major commercial AI company. Its valuation reached $500 billion in October after a secondary share sale.
The talks are notable given Amazon’s strong ties with Anthropic, an OpenAI rival. Amazon has invested billions in Anthropic since 2023 and uses Amazon Web Services as its main cloud and training platform. Last year, Amazon also opened an $11 billion data center campus in Indiana to support Anthropic’s AI models.
Amazon continues to cut costs across its business to increase spending on AI, data centers and long-term infrastructure.
