Nvidia, Amazon, Microsoft Said To Circle Mega Fundraising Round That Could Push OpenAI Valuation Past $800B

• OpenAI is reportedly in talks to raise up to $60 billion from Big Tech firms.
• Amazon is considering investing in OpenAI for the first time, with talks reportedly hinging on separate cloud and commercial agreements.
• Softbank completed a $41 billion investment in the ChatGPT maker in December.

OpenAI is in talks to raise up to $60 billion from its existing backers, Nvidia and Microsoft, and first-time investors Amazon, The Information reported on Wednesday, citing a source.

Nvidia could put in up to $30 billion, Amazon between $10 billion and $20 billion, and Microsoft just under $10 billion, the report said. Interestingly, Amazon is a major investor in OpenAI rival Anthropic, alongside Microsoft and Nvidia, which are also minor shareholders. 

Amazon's investment could depend on separate negotiations, including a possible expansion of OpenAI's cloud server rental deal with Amazon and a commercial agreement for OpenAI to sell its products, such as enterprise ChatGPT subscriptions, the report said. Amazon Web Services is one of the cloud providers for OpenAI.

Such transactions in the AI space have raised concerns about circular deals, with infrastructure suppliers, cloud providers, and AI companies increasingly investing in one another while simultaneously transacting billions of dollars in goods and services – and ratcheting up risk.

Reports earlier this week said SoftBank is eyeing a $30 million investment in OpenAI. The Japanese firm said in December that it had completed a $41 billion investment in the ChatGPT maker, giving it an 11% stake.

Reports have said that new funding would catapult OpenAI’s valuation above $800 billion, making it the most valued private company in the world. OpenAI, which recently converted to a for-profit entity, has also kicked off plans for its initial public offering.

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