"Amazon is in talks to invest more than $10bn (7.5bn) 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 datacentre 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 datacentre 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."
Amazon is negotiating an investment exceeding $10bn in OpenAI that could lift OpenAI's valuation above $500bn. Amazon is the world's largest datacentre provider and the investment would help OpenAI meet commitments to rent cloud capacity, including a $38bn, seven-year deal with Amazon Web Services. OpenAI plans to use Amazon's Trainium chips and faces a $1.4tn compute spending commitment over eight years, far exceeding its $13bn annual revenues. OpenAI converted its main business to a for-profit entity, Microsoft holds about 27%, and OpenAI is considering an IPO that could value it up to $1tn. Additional partnerships this year include Oracle and Nvidia, and a hire has been made to develop government relationships.
Read at www.theguardian.com
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