OpenAI is in talks with Amazon for a potential investment and AI chip deal, with a potential investment exceeding $10 billion. The talks come after OpenAI’s recent restructuring, giving the firm more flexibility. Amazon has already invested in OpenAI rival Anthropic, and other major players are also investing heavily in the generative AI market.

Amazon Web Services has been developing AI chips for almost a decade, with offerings for AI model training and inference. OpenAI has recently made infrastructure commitments with Nvidia, AMD, and Broadcom, and signed a $38 billion computing capacity agreement with AWS. OpenAI also completed a $6.6 billion secondary share sale in October.

Amazon’s stock closed at $221.27 on Wednesday, down 0.58%, and is currently trading after hours at $221.76 on the NasdaqGS. The views expressed are of the author and not necessarily those of Nasdaq, Inc.

Read more at Nasdaq: OpenAI Holds Talks With Amazon On Potential $10 Bln Investment And AI Chip Use