Nvidia, Amazon, and Microsoft are reportedly in discussions to invest a combined sum of up to $60 billion in OpenAI. According to a report by The Information, the talks are in preliminary stages, and the terms have not yet been finalized.
Nvidia is considering a commitment of $30 billion, while Microsoft may invest less than $10 billion. Amazon, potentially a new backer for OpenAI, is exploring an investment exceeding $10 billion and possibly surpassing $20 billion. If the investment round is successful, it could propel OpenAI's valuation to approximately $830 billion.
This potential capital injection is part of a broader funding effort that could reach approximately $100 billion. The funding aims to cover the substantial computing demands of OpenAI's next-generation models. In addition to the investments from Nvidia, Microsoft, and Amazon, SoftBank Group Corp. is reportedly planning to commit around $30 billion.
The potential investment highlights the strategic importance of OpenAI across cloud infrastructure, AI software, and model development. The report notes that OpenAI is close to receiving formal investment commitments from these companies. While Amazon and Microsoft have declined to comment, Nvidia and OpenAI have not yet responded to requests for comment.
Some analysts are beginning to express concerns about a potential AI bubble, partly due to the circular nature of these deals. For instance, companies like Nvidia and Amazon could provide funding that OpenAI then uses to purchase chips and cloud capacity from those same companies. This cycle could inflate reported demand across the supply chain without demonstrating sustainable profitability from end-users.
The potential investment from Amazon may depend on ongoing discussions, including expanding OpenAI's utilization of Amazon's cloud infrastructure and a possible commercial agreement to distribute OpenAI products, such as enterprise versions of ChatGPT, through Amazon. If completed, this would be one of the largest private funding rounds in tech history.
