Amazon has entered early‑stage talks to invest up to $10 billion in OpenAI, the company behind ChatGPT, and to allow the AI lab to run its models on Amazon Web Services’ custom Trainium chips. The deal would give OpenAI access to a silicon platform that competes with Nvidia’s GPUs and Google’s Tensor Processing Units, positioning Amazon as a direct challenger in the AI hardware race.
The potential investment would value OpenAI at more than $500 billion, a figure that aligns with the company’s recent valuation after an employee share sale in October 2025. The partnership would also deepen Amazon’s AWS presence in the AI market, following a $38 billion, seven‑year cloud‑services agreement with OpenAI announced in November 2025. By diversifying OpenAI’s cloud strategy beyond Microsoft Azure, Amazon could secure a larger share of the growing AI compute demand, which is projected to reach $1.4 trillion over the next eight years.
Amazon’s move is part of a broader strategy to challenge Nvidia’s dominance in AI silicon. By offering OpenAI a high‑performance, cost‑effective alternative, Amazon signals confidence in its custom‑chip business and aims to attract other AI developers to its platform. The deal also raises questions about Microsoft’s exclusive partnership with OpenAI, as the new investment could shift the balance of influence and access to cutting‑edge models.
Investors had already reacted to earlier reports of the potential deal, with Amazon shares rising 1.4% in premarket trading. The market’s positive reaction reflects expectations that the partnership will boost AWS revenue and validate Amazon’s custom‑chip strategy, reinforcing confidence in the company’s AI infrastructure ambitions.
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