Amazon is in early discussions to invest as much as $10 billion in OpenAI in a deal that would see the AI lab using the e-commerce giant’s AI chips,CNBCreported.
Amazon investing in OpenAI would mark the latest in a series ofcircular dealsin the AI space — major hardware manufacturers and cloud providers strike deals with young AI companies to use their products, while the upstarts commit to using their data centers and chips for training their AI models.
This past March, OpenAIinvested$350 million of equity into CoreWeave, which used the funds to buy chips from its backer Nvidia. Those same chips provide compute to OpenAI, which increases CoreWeave’s revenue and in the end makes OpenAI’s stake more valuable. Then in October, OpenAI signed a deal to pick up a 10% stake in AMD andcommitted to using the chipmaker’s AI GPUs, and also signeda chip usage agreement with Broadcom that month. And in November, the ChatGPT maker signeda $38 billion cloud computing deal with Amazon.
OpenAI and Amazon did not immediately respond to requests for comment.
Source: Techcrunch
