Amazon’s $10 Billion OpenAI Play Reshapes AI Chip Race
Amazon is negotiating a potential $10 billion investment in OpenAI, a move that would significantly expand its foothold in the generative AI market. The deal, still under discussion, includes OpenAI's use of Amazon's Trainium AI chips—a direct challenge to Nvidia and Google's hardware dominance.
This follows Amazon's $8 billion investment in OpenAI competitor Anthropic and a $38 billion cloud services deal signed last November. The partnership WOULD mark OpenAI's first major collaboration beyond Microsoft, which holds a 27% stake after the company's October restructuring.
Amazon Web Services has been developing AI chips since 2015, with its Trainium series representing the latest salvo in the escalating battle for AI infrastructure supremacy. The deal underscores how cloud providers are increasingly leveraging strategic investments to lock in next-generation AI workloads.