Fresh money for OpenAI: Amazon to invest 10 billion

Amazon is reportedly set to invest more than ten billion US dollars in OpenAI. However, according to The Information, this money is earmarked. OpenAI is to use it to purchase server capacities from Amazon Web Services (AWS). In addition, it concerns Amazon's distribution of the newly announced AI chips called Trainium. Another circular business is emerging.

OpenAI has already entered into similar deals with at least five other cloud providers – most notably Nvidia, but also with AMD, and billions are flowing to Oracle. There is already cooperation with AWS. Previously, 38 billion US dollars were to flow in over the next seven years for this purpose. OpenAI receives server capacities in return. However, these are currently based on Nvidia's AI chips. With the expansion, which The Information reports on, this could shift to Amazon's chips. They are in direct competition with those from Nvidia.

Amazon's semiconductor division is only a few years old. However, Trainium is already being tested by Anthropic. Google is also working on its AI chips. OpenAI is also working with Broadcom to develop its own chips.

Limits of Partnerships

What cannot be part of the business is the distribution of OpenAI's services to Amazon's cloud customers. Microsoft has secured exclusive rights here. However, the ties between the former major investor and the AI company have become increasingly strained recently.

However, the entirety of the contracts that OpenAI has entered into makes many observers skeptical. There are fears that a kind of AI bubble could burst. This is due, among other things, to excessively high valuations, the aforementioned circular business deals, and insufficient revenue streams from entities like OpenAI. Expectations for AI companies are extremely high. If they cannot deliver, stock prices could plummet. Due to the many interdependencies, this would quickly affect many companies at once.

(emw)