Amazon discussing $10 billion OpenAI stake as AI valuation targets $500 billion
By Cygnus | 17 Dec 2025
Amazon.com Inc. is in preliminary talks to invest approximately $10 billion in OpenAI, a potential blockbuster deal that could value the artificial intelligence pioneer at over $500 billion, according to people familiar with the matter.
The discussions, while fluid, signal Amazon’s aggressive intent to deepen its footprint in the generative AI ecosystem. If finalized, the investment would not only be one of the largest in tech history but would also strategically align the world’s largest cloud provider (AWS) with the developer of ChatGPT, complicating OpenAI’s existing alliance with rival Microsoft.
Diversifying beyond Microsoft
The move underscores OpenAI’s shift toward a “multi-cloud” strategy. After years of exclusive reliance on Microsoft—which holds a 27% stake—OpenAI has recently restructured into a public benefit corporation to facilitate broader capital raising.
This flexibility has already led to a reported $38 billion cloud services agreement with Amazon in November. A fresh equity injection would further cement this relationship, potentially anchoring a wider funding round as OpenAI seeks the trillions of dollars required to build next-generation AI models.
The ‘Trainium’ factor
A key component of the talks involves hardware. Reports suggest OpenAI is exploring the use of Amazon’s proprietary “Trainium” AI chips for model training. This would provide a critical alternative to Nvidia’s dominant GPUs, potentially lowering compute costs for OpenAI while validating Amazon’s multi-billion dollar bet on custom silicon.
Enterprise synergy
Beyond infrastructure, the two companies are reportedly discussing commercial synergies, including selling an enterprise version of ChatGPT directly to Amazon for internal use.
However, analysts caution that the deal is far from guaranteed. Investors are increasingly scrutinizing the path to profitability for foundation models, and any agreement would likely face intense regulatory review given the concentration of AI power among a handful of U.S. tech giants.
Brief Summary
Amazon is reportedly in talks to invest roughly $10 billion in OpenAI, potentially valuing the AI startup at over $500 billion. The deal would deepen ties between AWS and OpenAI, potentially involving the use of Amazon’s custom “Trainium” chips. It signals OpenAI’s strategy to diversify its cloud partners beyond Microsoft as it seeks capital for massive infrastructure expansion.
Frequently Asked Questions (FAQs)
Q1: Why is Amazon investing in OpenAI?
Amazon wants to ensure its cloud division (AWS) remains the backbone of the AI revolution. By investing, Amazon secures OpenAI as a major customer for its cloud services and custom chips (Trainium), preventing Microsoft from monopolizing the most important AI startup in the world.
Q2: What is the valuation?
The talks suggest a valuation of over $500 billion for OpenAI. This would make it one of the most valuable private companies in history, reflecting the belief that AI models will become essential global infrastructure.
Q3: Doesn’t Microsoft own OpenAI?
No. Microsoft owns about 27% of OpenAI and has exclusive rights to resell its models on the cloud. However, OpenAI’s recent restructuring allows it to partner with other providers (like Oracle and Amazon) to get the massive computing power it needs.
Q4: What are ‘Trainium’ chips?
Trainium is Amazon’s custom-designed chip for training AI models. It competes with Nvidia’s GPUs. If OpenAI uses Trainium, it validates Amazon’s hardware and gives OpenAI a cheaper alternative to Nvidia.
Q5: Is the deal final?
No. Sources emphasize that discussions are ongoing and terms could change.
