Amazon in Talks to Invest $10 Billion in OpenAI in Potential $500 Billion Valuation Deal
GeokHub
Contributing Writer
NEW YORK — Dec 16, 2025 Amazon is in discussions to invest around $10 billion in OpenAI, the maker of ChatGPT, in a deal that could value the artificial intelligence company at more than $500 billion, according to a source familiar with the matter.
The talks remain fluid and non-binding, the source said, speaking on condition of anonymity because the negotiations are private.
Summary
- Amazon considering a $10 billion investment in OpenAI
- Deal could value OpenAI above $500 billion
- OpenAI may use Amazon’s Trainium AI chips
- Talks highlight OpenAI’s growing independence and capital-raising ability
Deal Reflects Surging Demand for AI Computing Power
The potential investment underscores the intense demand for computing infrastructure as technology companies race to develop AI systems capable of matching or exceeding human intelligence.
OpenAI has already signed several multi-billion-dollar agreements this year, including partnerships with Nvidia and Oracle, and in November reached a $38 billion cloud services deal with Amazon.
However, investors remain cautious amid questions over whether the massive spending on AI infrastructure will deliver the returns many expect.
IPO Ambitions and Strategic Flexibility
The discussions come as OpenAI lays the groundwork for a potential initial public offering, which Reuters reported in October could value the company at up to $1 trillion.
Industry sources say the talks with Amazon reflect OpenAI’s increased flexibility following its restructuring away from its original non-profit model and the resolution of key issues surrounding its partnership with Microsoft.
Under that arrangement, OpenAI operates as a public benefit corporation controlled by a non-profit entity, allowing it to raise capital more freely while preserving its stated mission.
Microsoft holds a 27% stake in OpenAI and retains exclusive rights to sell OpenAI’s models to its cloud customers.
Amazon Chips and Enterprise ChatGPT
According to The Information, which first reported the talks, OpenAI plans to use Amazon’s Trainium AI chips, which compete with offerings from Nvidia and Google.
Amazon’s financing could also form part of a broader fundraising round involving other investors, the report said.
OpenAI is additionally exploring the sale of an enterprise version of ChatGPT to Amazon, though it remains unclear whether the talks include integrating ChatGPT into Amazon’s own shopping or consumer applications.
Amazon, OpenAI and Microsoft did not immediately respond to requests for comment.
