What is Amazon's potential investment in OpenAI?

Amazon is reportedly in talks to invest over $10 billion in OpenAI.

How much is OpenAI spending on data centers?

OpenAI has committed $38 billion to Amazon Web Services and faces a total compute spending of $1.4 trillion over eight years.

Why is OpenAI seeking major funding from Amazon?

OpenAI needs substantial funding to cover its massive compute costs and data center commitments amidst intense competition.

Home / Technology / Amazon Eyes $10B OpenAI Stake Amid AI Spending Spree

Amazon Eyes $10B OpenAI Stake Amid AI Spending Spree

17 Dec

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Summary

Amazon in talks to invest over $10 billion in OpenAI.
OpenAI committed $38 billion to Amazon Web Services.
OpenAI faces $1.4 trillion compute spending over eight years.

Amazon Eyes $10B OpenAI Stake Amid AI Spending Spree

Amazon is in advanced discussions to invest more than $10 billion in OpenAI, the artificial intelligence startup responsible for ChatGPT. This potential deal could significantly boost OpenAI's valuation, possibly exceeding $500 billion. The investment is crucial for OpenAI to manage its massive expenditure on computing power and data centers.

OpenAI has made a substantial commitment of $38 billion to Amazon Web Services over the next seven years for cloud computing capacity. The company anticipates a staggering $1.4 trillion in compute costs over the coming eight years, far outpacing its current revenue, necessitating this new funding drive.

Amidst intense competition, particularly from Google's Gemini AI, OpenAI is actively seeking capital. Recent deals include significant commitments with Oracle and Nvidia. The company has also appointed former UK chancellor George Osborne to foster global government relationships and national AI projects.