Amazon in Early Talks to Invest in OpenAI: Reports

As the race to build ever-larger AI models intensifies, capital is becoming as critical as code. Amazon is now the latest Big Tech player weighing a deeper financial commitment to OpenAI, underlining how strategic alliances are being reshaped by the cost of computing power.

According to a Reuters report dated December 16, Amazon.com Inc. is in talks to invest about $10 billion in OpenAI, the company behind ChatGPT. A source familiar with the matter told Reuters the discussions are “very fluid”, adding that a deal at this scale could value OpenAI at more than $500 billion.

While neither Amazon nor OpenAI has commented publicly, the talks point to a broader recalibration underway in the AI ecosystem, one where cloud providers, chipmakers, and model developers are increasingly interdependent.

Why Amazon’s Interest Matters

Amazon already plays a role in OpenAI’s infrastructure roadmap. In November, OpenAI signed a $38 billion deal to buy cloud services from Amazon, highlighting the enormous and ongoing demand for compute required to train and run advanced AI systems.

An equity investment would take that relationship a step further, aligning Amazon more closely with OpenAI’s long-term growth while giving the AI company another deep-pocketed backer beyond Microsoft.

The move also reflects the scale of spending now considered necessary in AI. Companies across the sector are committing billions of dollars to secure chips, data centres, and cloud capacity as they compete to build systems that rival or surpass human-level capabilities.

OpenAI’s Expanding Web of Partnerships

Amazon is not alone in writing large cheques. This year, OpenAI has signed multi-billion-dollar AI infrastructure deals with firms such as Nvidia and Oracle. These agreements illustrate how OpenAI is diversifying its partnerships to secure computing resources at scale.

Reuters noted that the talks with Amazon come as OpenAI lays the groundwork for a potential initial public offering. Earlier reporting suggested an IPO could value the company at up to $1 trillion, putting it among the most valuable technology firms globally if it proceeds.

The discussions also underscore how OpenAI’s restructuring has changed its options. After moving away from its non-profit-only structure and settling its arrangement with Microsoft, OpenAI now operates as a public benefit corporation, controlled by a non-profit entity with a stake in its financial success. This shift has eased constraints around capital raising and partnerships.

Microsoft’s Role and the Competitive Undercurrent

Microsoft remains OpenAI’s largest strategic partner, holding a 27% stake and retaining exclusive rights to sell OpenAI models to its cloud customers. That exclusivity makes Amazon’s potential investment particularly notable, signalling that OpenAI can still partner broadly even as Microsoft remains central to its commercialisation strategy.

For Amazon, the talks arrive at a time when it is pushing its own AI infrastructure, including Trainium chips that compete with offerings from Nvidia and Google. The Information, which first reported the discussions, said OpenAI plans to use Amazon’s Trainium chips, suggesting the investment could be tied as much to hardware adoption as to financial returns.

Investor Caution Amid Massive Spending

Despite the momentum, investors are watching closely for signs of fatigue. The AI sector has drawn unprecedented levels of capital, raising questions about whether demand will sustain the massive investments being made—and how quickly they will pay off.

An Amazon investment would reinforce confidence in OpenAI’s trajectory, but it also highlights the high stakes involved. Building frontier AI models is no longer just a research challenge; it is a capital-intensive industrial effort.

For now, the talks remain exploratory. Whether they result in a single investment or spark a broader fundraising round, as The Information suggested, they will be closely watched across Silicon Valley and global tech markets.

What is already clear is this: as AI scales, so do the alliances behind it. And Amazon’s reported $10 billion conversation with OpenAI is another signal that the next phase of AI competition will be fought as much in boardrooms and data centres as in labs.