According to sources familiar with the matter on Tuesday (December 16), Amazon Working with artificial intelligence OpenAI is in talks to raise at least $10 billion in initial discussions.
The source said negotiations between Amazon and OpenAI are progressing well, though specific details may change. Amazon may invest $10 billion or more, while OpenAI will use Trainium, Amazon Web Services' (AWS) self-developed AI chip.
This move could push OpenAI's market capitalization above $500 billion, while also helping Amazon expand its influence in the AI chip field and challenge Nvidia. And Google.
According to reports, OpenAI and Amazon began discussions about this matter around October, shortly after OpenAI completed its corporate restructuring. It's also worth noting that this potential deal comes as OpenAI prepares for its initial public offering (IPO), at which time the company's valuation could reach as high as $1 trillion.
Amazon's self-developed chip
According to sources, OpenAI plans to use AWS's Trainium chip, Amazon's latest generation chip, in an effort to compete with Nvidia and Google's products in the hardware field.
Amazon's positioning of Trainium chips is targeted at companies seeking high cost-performance.
The company stated that, compared to Nvidia's market-leading GPUs, the Trainium chip can support high-intensity computing at a lower cost and with higher efficiency.
The move to develop its own chips is also a key part of Amazon's artificial intelligence strategy, aimed at strengthening its cloud business, AWS.
While AWS is the world's largest provider of computing power and data storage, it has struggled to replicate its dominance in the traditional cloud market amidst fierce competition in the artificial intelligence market, leading some enterprises to prefer Microsoft. Amazon's move will likely intensify competition in the AI chip market, leading to collaborations or the adoption of Google's services.
(Article source: CLS)
