E-commerce giant Amazon has planned to invest $50 billion in OpenAI, starting with an initial $15 billion and followed by another $35 billion in the coming months, the companies announced on Friday.
The latest investment is part of a significant funding round for OpenAI, which is raising $110 billion in new capital at a pre-money valuation of $730 billion. It also includes $30 billion from SoftBank and $30 billion from Nvidia.
“OpenAI and Amazon today announced a multi-year strategic partnership to accelerate AI innovation for enterprises, startups, and end consumers around the world. Amazon will also invest $50 billion in OpenAI, starting with an initial $15 billion investment and followed by another $35 billion in the coming months when certain conditions are met,” the release read.
Amazon Web Services (AWS) will serve as the exclusive third-party cloud provider for OpenAI Frontier, the enterprise platform used by the ChatGPT creator to develop, deploy, and manage AI agents.
OpenAI will use 2 gigawatts of capacity powered by Amazon’s in-house Trainium chips to support computing demand, according to the companies.
(This is a developing story. Check back for further updates.)