Amazon in $10 Billion Talks to Back OpenAI in AI Chip Power Play
Amazon.com Inc. is negotiating a potential $10 billion investment in OpenAI, the creator of ChatGPT, in a move that could reshape the semiconductor landscape. The deal would position Amazon’s Trainium chips as a challenger to Nvidia Corp.’s dominance in AI hardware while catapulting OpenAI toward a $500 billion valuation.
The discussions coincide with OpenAI’s anticipated IPO, which market observers believe could create the tech sector’s first trillion-dollar AI company. Such a valuation would place the startup among peers like Apple Inc., Microsoft Corp., and Alphabet Inc.
Amazon’s semiconductor division stands to gain critical scale if the deal proceeds. Trainium chips, marketed as energy-efficient alternatives to traditional GPUs, address the mounting power demands of data centers worldwide. For OpenAI, access to Amazon’s infrastructure could accelerate development while reducing reliance on Nvidia.
