"Nvidia, Amazon, and Microsoft are in talks to invest up to $60 billion in OpenAI. Nvidia is negotiating for up to $30 billion, Microsoft for less than $10 billion, and newcomer Amazon for possibly more than $20 billion. OpenAI is struggling with rising costs for training and running its AI models. The Information reports that OpenAI is close to receiving term sheets, a type of investment commitment from the three companies."
"Noteworthy is Amazon's position, which is mentioned as a new investor. The company is said to want to invest significantly more than $10 billion, possibly even more than $20 billion. But there are some snags to that deal. Amazon's investment would depend on separate negotiations. These include a possible extension of OpenAI's cloud server lease agreement with Amazon. A commercial deal to sell OpenAI products, such as enterprise ChatGPT subscriptions, to Amazon is also on the table."
Nvidia, Amazon, and Microsoft are negotiating investments that could total up to $60 billion in OpenAI. Nvidia may commit up to $30 billion, Microsoft less than $10 billion, and Amazon possibly more than $20 billion. Amazon's potential investment is contingent on separate negotiations, including a cloud server lease extension and commercial agreements to sell OpenAI products like enterprise ChatGPT subscriptions. OpenAI posts annual revenue exceeding $20 billion but continues to operate at a loss because of soaring training and operating costs. Capacity increased from 0.6 gigawatts to 1.9 gigawatts in one year amid growing competition from Google.
Read at Techzine Global
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