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Key Moments

  • OpenAI is reportedly in discussions with Amazon (NASDAQ:AMZN) to raise $10 billion or more, according to The Information.
  • The potential funding round would value OpenAI at over $500 billion, reflecting sustained investor demand for leading AI players.
  • Amazon shares rose 1.4% in premarket trading by 04:53 ET on Wednesday following the report.

Reported Funding Discussions Between Amazon and OpenAI

OpenAI is engaged in negotiations to secure $10 billion or more in new funding from Amazon (NASDAQ:AMZN), The Information reported on Tuesday, citing people familiar with the matter. The capital would support the artificial intelligence firm’s expanding computing requirements, which have been rising rapidly.

Market Reaction and Implied Valuation

Following the report, Amazon’s stock gained 1.4% in premarket trading by 04:53 ET on Wednesday. According to The Information, the contemplated deal would place OpenAI’s valuation above $500 billion, underscoring ongoing investor enthusiasm for top-tier AI developers despite the significant capital demands of the industry.

CompanyTickerEventDetail
AmazonNASDAQ:AMZNPremarket moveShares up 1.4% by 04:53 ET on Wednesday
OpenAIN/AFunding talksIn discussions to raise $10 billion or more from Amazon
OpenAIN/AImplied valuationMore than $500 billion, per The Information report

Use of Funds and Cloud Commitments

The report stated that a potential investment from Amazon would support OpenAI in fulfilling existing commitments to lease substantial server capacity from cloud infrastructure providers. These obligations reflect the intensive computing needs associated with OpenAI’s operations.

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