Amazon in talks to invest about $10 billion in OpenAI

Amazon is in talks to invest more than $10bn in OpenAI, in the latest funding deal being struck by the startup behind ChatGPT.

If it goes ahead, the market valuation of OpenAI could rise above $500bn, according to The Information, a tech news site that revealed the negotiations.Amazon, which is best known as an online retailer, is also the world's largest datacenter provider and its investment would help OpenAI pay for its commitments to rent capacity from cloud computing companies - including Amazon.

OpenAI said last month it would spend $38bn on capacity from Amazon Web Services – the company's datacenter arm - over seven years. The Information said that OpenAI planned to use Amazon's Trainium chips, which compete with Nvidia and Google's chips. It also reported that Amazon's financing could lead to a broader fundraising round with other investors.

OpenAI's spending commitment on compute – the chips and servers that power its chatbot – is $1.4tn over the next eight years, a figure far in excess of its reported $13bn in annual revenues.

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