Amazon is considering a $10 billion investment in OpenAI: ChatGPT developer’s valuation may exceed $500 billion
17 December 22:40
Amazon is in talks to invest in OpenAI, the developer of ChatGPT, reports "Komersant Ukrainian".
According to Reuters, the potential contribution could reach about $10 billion, and the market valuation of the artificial intelligence company could exceed $500 billion. Negotiations are ongoing and remain dynamic.
Why it matters
The possible deal emphasizes the continuous demand for computing power in the AI sector. Major tech players are competing for access to models and infrastructure capable of delivering breakthroughs in generative artificial intelligence.
In November, OpenAI signed a $38 billion contract to purchase cloud services from Amazon.
Earlier, OpenAI had already signed multibillion-dollar deals with Nvidia and Oracle.
The company has moved away from a purely non-profit model and received the status of a public benefit corporation, which has expanded its capital raising capabilities.
Microsoft’s role
Microsoft owns about 27% of OpenAI and has the exclusive right to sell its models to its cloud customers. The reformatting of the agreement with Microsoft has removed significant restrictions on OpenAI’s funding and access to resources.
Negotiations take place as OpenAI prepares for an IPO
The negotiations take place as OpenAI prepares for an IPO that is estimated to reach $1 trillion, one of the largest offerings in history. At the same time, investors are closely monitoring whether the huge investments in AI will pay off and whether demand will start to slow down.
Risks and doubts
Despite the excitement, the market is growing cautious: not everyone is sure that the current AI spending will pay off quickly. That is why any major deals, in particular with Amazon, are seen as a test of confidence in the long-term strategy of OpenAI.
