News Summary

Amazon is currently in discussions to invest $10 billion in OpenAI, a move that could push OpenAI’s valuation above $500 billion. As part of the proposed deal, OpenAI would utilize Amazon’s Trainium AI chips and expand its data center capacity with Amazon Web Services (AWS). This agreement is part of a series of moves by OpenAI to restructure its data center and chip supply partnerships, having recently made deals with NVIDIA, Oracle, and AMD. The strategy involves OpenAI taking investment money and channeling it back to infrastructure providers, raising concerns about the circular nature of these investments. Notably, OpenAI has committed $38 billion for AWS services over the next seven years.