OpenAi in talks to raise 10 billion from Amazon and adopt its Trainium chips
The deal under discussion could bring OpenAI to a value of over USD 500 billion. Planned adoption of the AI chip developed by Amazon
OpenAI is in initial talks to raise at least $10 billion in investment from Amazon and, in parallel, use the Jeff Bezos company's AI chips.
The deal under discussion could bring OpenAI to a value of over USD 500 billion. It also envisages the adoption of Amazon's Trainium chip, people informed about the negotiations have reported. The talks, however, are at a preliminary stage and the terms could change, the source added.
A deal would mark a victory for Amazon's fledgling semiconductor division. While Nvidia dominates the market for powerful chips needed to create artificial intelligence platforms, AI service developers such as Meta and Google are beginning to explore competing offerings.
Amazon's Trainium chip
The Trainium chip is a key element of Amazon's strategy to distinguish itself in artificial intelligence. According to the company, Trainium chips are able to power the intensive calculations underlying artificial intelligence models more economically and efficiently than Nvidia's market-leading graphics processing units. Negotiations between OpenAI and Amazon reportedly began in October.
