Amazon is reportedly considering an investment of more than £7.5bn ($10bn) in OpenAI under the latest funding deal agreed by the ChatGPT developer.
If the deal is made, the market valuation of the startup could grow above $500bn (£375bn), The Information reported.
Amazon’s investment would help OpenAI finance its commitments to rent capacity from cloud computing businesses, which include Amazon.
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In November, OpenAI said that it would spend $38bn on capacity from the ecommerce giant’s datacentre business, Amazon Web Services, over seven years.
OpenAI is planning to use Amazon’s Trainium chips, The Information reported.
Amazon’s financing could result in a wider fundraising round with other investors, according to the publication.
OpenAI’s spending commitment on compute stands at $1.4tn over the next eight years, making it much greater than its reported $13bn in annual sales.
Due to this, the firm has been seeking additional funding and has transformed its main business into a for-profit corporation.
The conversations with Amazon reportedly include discussions over commercial opportunities as well as selling a corporate version of ChatGPT to the business.
Retail Gazette has contacted Amazon for comment.
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