"The talks, first reported by The Information and subsequently confirmed by multiple sources, are said to be at an early and fluid stage. News of the potential deal pushed Amazon shares up around 0.6 per cent, reflecting investor optimism around the deepening relationship between the world's largest cloud provider and one of the most influential AI developers. As part of the proposed investment, OpenAI is expected to increase its use of Amazon's Trainium AI accelerator chips,"
"The deal could also form the cornerstone of a broader fundraising round involving additional investors. The discussions come as OpenAI explores longer-term capital options, including a potential initial public offering that could value the company at as much as $1 trillion. The rapid expansion of generative AI has driven extraordinary demand for computing power, placing cloud infrastructure providers such as Amazon Web Services (AWS) at the centre of the technology's growth."
"Amazon and OpenAI already have a substantial commercial relationship. Last month, OpenAI agreed to a $38 billion, multi-year deal to purchase cloud services from AWS, primarily to run its AI workloads using Nvidia chips. The companies described the agreement as a strategic partnership designed to support OpenAI's rapidly expanding computational needs. OpenAI has also struck a series of other landmark infrastructure deals."
Amazon and OpenAI are holding early, fluid talks about an investment that lifted Amazon shares about 0.6 per cent. As part of the proposed deal, OpenAI would increase use of AWS Trainium chips. The investment could anchor a broader fundraising round and comes as OpenAI considers long-term capital options, including a potential IPO valuing the company up to $1 trillion. Generative AI growth is driving massive demand for compute, centering cloud providers like AWS. OpenAI already has major infrastructure agreements, including a $38 billion multi-year AWS cloud purchase, a Nvidia data-centre deal, and a cloud partnership with Oracle.
Read at bmmagazine.co.uk
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