Amazon is in talks to invest more than US$10 billion (A$15.1 billion) in ChatGPT creator OpenAI.
If the investment goes ahead, OpenAI’s market investment could rise to over US$500 billion, according to The Information.
It would also help Amazon afford some of the commitments it made to rent servers from cloud providers, including Amazon Web Services.
Last month, OpenAI announced it would spend US$38 billion renting servers from AWS over the next seven years, making AWS one of at least five cloud providers OpenAI uses to develop its artificial intelligence.
OpenAI planned to use Amazon’s Trainium chips, which compete with Nvidia and Google’s chips.
The Information also reported that Amazon’s financing could lead to a broader fundraising round with other investors.
Over the next eight years, OpenAI plans to spend US$1.4 trillion on the chips and servers that power its chatbot, which is well above its reported US$13 billion in annual revenues.
This has led the loss-making company to seek further funding and convert its main business into a for-profit corporation.
Its main backer, Microsoft, has taken a 27% stake in a deal that valued OpenAI at US$500 billion.
The ChatGPT owner is also considering an initial public offering and selling its shares to the general public. This could lead to the company being valued at US$1 trillion.
OpenAI has also struck deals with Oracle. Spending US$300 billion on building datacentres.
This also follows OpenAI declaring a “code red” to staff as it fought back against Google and its updated Gemini AI tool. The company exited “code red” following the launch of ChatGPT-5.2.
The Amazon talks reportedly include discussing commercial opportunities and selling a corporate version of ChatGPT to the online retailer.
