Amazon is reportedly in talks to invest up to $10bn in ChatGPT owner OpenAI.
The world’s largest online retailer would reportedly sell the ChatGPT developer chips and computing power as part of the proposed deal.
News of the potential investment was first reported by technology news site The Information, which said the proposed deal could push the market valuation of OpenAI above $500bn.
OpenAI signed a $38bn contract with Amazon in November to access its cloud computing infrastructure, shortly after the technology firm finished its conversion into a for-profit entity.
That decision also coincided with a new approach to its relationship with early backer Microsoft, allowing OpenAI to sign new deals to help drive its huge demand for computing power.
Amazon has a strong stake in the development of generative AI, both through its large cloud computing business and the deployment of generative AI-driven tools in its own retail business.
In terms of retail, Amazon has generally focused on its own generative AI tools and features.
The company has reportedly blocked agents from AI services such as Google and Perplexity from accessing its site.
“We think it’s fairly straightforward that third-party applications that offer to make purchases on behalf of customers from other businesses should operate openly and respect service provider decisions whether or not to participate,” Amazon said in a statement to The Information last month.
However, Amazon chief executive Andy Jassy said during an October earnings call that the company would likely eventually find a way to partner with third-party applications.
OpenAI has bolstered its own retail offering. The company now allows US users to purchase directly from participating retailers within ChatGPT and rolled out a “shopping research” feature last month.
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