OpenAI Seeks $100 Billion in Funding, Amazon to Invest $50 Billion

TLDR

• OpenAI is seeking to raise up to $100 billion in a new funding round.
• Amazon is considering a $50 billion investment, making it the largest investor.
• Amazon CEO Andy Jassy is leading talks with OpenAI’s Sam Altman.
• The deal could push OpenAI’s valuation to as high as $830 billion.
• Amazon continues investing heavily in AI despite recent corporate layoffs.

OpenAI is looking to raise up to $100 billion in new funding, with Amazon considering a $50 billion stake. If successful, this deal could be one of the largest private tech investments in history. Amazon CEO Andy Jassy is leading the talks with OpenAI’s Sam Altman, but details of the deal are still subject to change.

Amazon’s Major Investment in OpenAI

Amazon’s involvement in OpenAI would mark a major shift in its AI investment strategy. Sources close to the discussions indicate that the structure of the deal is still being worked out. Should it happen, Amazon’s $50 billion investment would make it the largest stakeholder in this funding round.

Despite recent corporate layoffs, Amazon continues to pour large sums into artificial intelligence. The company recently cut 16,000 jobs while also committing billions to AI infrastructure. This includes custom AI chips and AI models, making OpenAI a crucial piece of its broader AI strategy.

OpenAI’s New Funding and Potential Valuation

The new round of funding could push OpenAI’s valuation to as high as $830 billion. OpenAI is seeking contributions from other large investors to complete the funding round. Companies such as SoftBank, Thrive Capital, Khosla Ventures, and MGX are already involved.

OpenAI’s growing financial needs stem from the massive costs associated with developing AI systems like ChatGPT. The company is also exploring new revenue streams, including advertisements. This move is crucial to offset the increasing expenses tied to building and maintaining powerful AI models.

As OpenAI seeks massive funding, it is also considering the possibility of going public. The company has not set a timeline for an IPO but is evaluating its options. In addition to the funding talks, OpenAI is negotiating large-scale deals, such as the $38 billion agreement with Amazon Web Services.

These developments come as OpenAI explores new technologies, such as Amazon’s custom AI chips. This partnership could further cement Amazon’s dual play in the AI market, as it continues to invest in both OpenAI and its rival, Anthropic.

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