The $10 billion loop: Amazon could pay OpenAI so OpenAI can pay Amazon

Amazon is reportedly in talks to invest at least $10 billion in OpenAI. According to three people familiar with the discussions who spoke to The Information, the deal would push OpenAI's valuation past $500 billion. The influx of cash is intended to help OpenAI cover its massive server costs, including a recently agreed-upon $38 billion deal with Amazon Web Services (AWS). As part of the arrangement, OpenAI would commit to using Amazon's proprietary "Trainium" AI chips rather than relying solely on Nvidia hardware.

The companies are also discussing the possibility of turning ChatGPT into a shopping platform. However, Microsoft's exclusive rights to sell OpenAI models to cloud customers could limit Amazon's options here. Talks reportedly began in October following OpenAI's corporate restructuring but haven't concluded yet. OpenAI remains in urgent need of capital, as the company expects to burn through more than $100 billion over the next four years.