Amazon is rumoured to be planning a massive investment. The firm is reported to be in talks regarding investing in OpenAI. OpenAI is the company behind the popular ChatGPT service. A well-informed source that knows the transaction details discloses that the price might put OpenAI’s worth at over $150 billion. It would be a significant change in the AI domain.
A Massive Potential Deal
Talks are still ongoing between Amazon and OpenAI. The individual who commented on the matter mentioned that it’s a highly fluid process, i.e., things can change. They will be spending $10 billion on this investment soon. This is a major revelation, indicating the towering OpenAI has gotten after it spun off as a non-profit at the very beginning.
This possible acquisition emerges at a rather eventful period for OpenAI. This company is already getting ready to launch its initial public share offering, its first public stock sale. According to reports, this public stock sale could be valued at up to one trillion dollars. This possible acquisition would be quite important before this major event takes place.
Microsoft is already one of the major partners of OpenAI. It owns two and a half per cent of the firm. This made OpenAI change its structure to easily raise more capital. An investment from Amazon would indicate that OpenAI is not limited to partnering with huge technology firms like Microsoft alone.
What Amazon Would Get From This
If this deal goes through, Amazon will gain access to a close partnership with the leader in AI technology. Tech news portal “The Information” was the first to reveal this news. According to this news, OpenAI plans on using specialised computer chips from Amazon. These are called “Trainium” chips. These compete against “Nvidia” and “Google” chips.
According to the report, OpenAI also wants to sell Amazon a business version of another application called ChatGPT. It is not clear whether the application will entail the inclusion of the smarts in Amazon’s applications. Amazon is busy developing applications that use AI to shop. OpenAI’s technology may make the applications more powerful if used.
Amazon’s investment may also pave the way for more investors to invest money in OpenAI. It may begin a broader fundraising round. It will provide more money to OpenAI to develop new and more sophisticated artificial intelligence.
Why This Matters in the Tech Industry
Such a deal will come as a shock to the whole tech world. Currently, Microsoft is the biggest collaborator and investor of OpenAI. But with the coming of Amazon, the whole scenario will change, and a new, strong partnership will emerge. Amazon will directly enter the race to dominate AI.
For the average member of the public, this could mean that the AI technology that we are utilising is going to become better and faster. This is because the competition that exists amongst these huge corporations might result in new developments and cheaper pricing. This is evidence that the advancement of AI is not an afterthought for these corporations.
Neither Amazon nor Microsoft did not provided an immediate response. This is expected in negotiations that are not open and are not concluded. All eyes are on the business world, waiting to see if these negotiations advance and become an agreement that alters the world of technology.
Check out the latest updates on giant business and AI news on Inspirepreneur Magazine.
