AI is the future, and companies like Microsoft know it. It’s why instead of taking a gamble and creating their own AI, they’d rather invest in companies like OpenAI, who have already done it successfully. And that investment paid off, netting Microsoft billions in return. Now, it looks like Amazon wants in on the action too with an investment into OpenAI of their own.
Amazon looking to make an investment in OpenAI
According to a recent Wall Street Journal report, Amazon is looking to make a $50 billion investment into OpenAI. The AI company is currently valued at $500 billion, but OpenAI wants another $100 billion. If Amazon were to invest in them, it would help the company reach 50% of its current funding goals.
The report reveals that Amazon’s CEO, Andy Jassy, is in talks with OpenAI CEO Sam Altman. However, we don’t know much about the deal at this point in time, and with all deals, it might not necessarily go through for a variety of reasons. However, OpenAI already has plans of its own.
The company has been in talks with sovereign wealth funds based in the Middle East. They have also been speaking with other tech companies like NVIDIA, SoftBank, and Microsoft (who they already have an existing deal with). OpenAI is also reportedly weighing the idea of an initial public offering, which could help them raise money by taking the company public and opening up its shares to retail investors.
What about Anthropic?
That being said, Amazon’s rumored plan to invest in OpenAI is interesting. Currently, Amazon has a partnership with Anthropic, the company behind Claude. Amazon’s AWS is the primary cloud and training provider for Anthropic. Plus, the company has also invested $8 billion into the AI company. If the rumors of a $50 billion investment into OpenAI are true, that’s a whole lot more money.
But we can’t really fault Amazon for shopping around. It would not be good business sense for them to put all their eggs into one basket. Plus, OpenAI is currently the biggest AI company around. It makes sense that Amazon would want to invest heavily into them.
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