Amazon is reportedly in preliminary discussions to invest as much as $10 billion in OpenAI, a deal that would see the AI lab using Amazon's AI chips. The potential agreement could value OpenAI at more than $500 billion. The move follows Amazon's earlier $8 billion investment in Anthropic and its recent launch of the Trainium chip series. OpenAI's shift to a for‑profit model has opened the door to new partnerships beyond its long‑time backer Microsoft. The proposed investment would add to a series of circular deals linking AI startups with hardware and cloud providers. Read more →

Amazon is in advanced discussions with OpenAI about a $10 billion investment that would also see the AI startup adopt Amazon's Trainium chips and increase its use of Amazon Web Services. The proposed deal could lift OpenAI's valuation past $500 billion while deepening the company's reliance on Amazon's cloud and hardware infrastructure. At the same time, OpenAI continues to expand relationships with other technology partners, including Microsoft, NVIDIA, Oracle and AMD, prompting investors to scrutinize the circular nature of its financing and compute arrangements. Read more →

Amazon executives highlighted the rapid growth of the company’s Trainium AI chip line, noting that Trainium2 is already generating multi‑billion‑dollar revenue with over a million chips in production and more than 100,000 customers. The chip’s price‑performance edge has attracted major partners such as Anthropic, which is using hundreds of thousands of chips for its Project Rainier. At AWS re:Invent, Amazon unveiled the next‑generation Trainium3, promising four‑times the speed and lower power usage, underscoring Amazon’s ambition to challenge Nvidia’s dominance in the AI‑hardware market. Read more →