OpenAI to get enormous boost as Nvidia, Microsoft, and Amazon plan $60 billion injection

Tech bellwethers Nvidia, Microsoft, and Amazon are reportedly having talks to invest up to $60 billion in the biggest AI startup OpenAI, the developer behind ChatGPT.

While Nvidia emerges as the biggest investor in the trio with an estimated injection of up to $30 billion, what's noteworthy is that it is an existing investor whose chips power OpenAI's AI models.

On the other hand, Microsoft is also one of the biggest backers and long-time supporters of OpenAI, and is exploring the possibility of investing less than $10 billion.

Meanwhile, Amazon is said to be a newcomer in the investor squad, as it is in talks to contribute way more than $10 billion, possibly above $20 billion, Reuters brought the development to light, citing a report from The Information on Wednesday.

The report also outlines that a term sheet for OpenAI is imminent from these tech giants, which represents formal investment commitments.

Amazon's potential investment reportedly depends on separate negotiations, including a possible expansion of OpenAI's cloud server rental agreement with Amazon, as well as a commercial arrangement for OpenAI to sell products like enterprise ChatGPT subscriptions to Amazon.

The development comes on the heels of reports suggesting that SoftBank Group is also in discussions to invest an additional $30 billion in OpenAI.

The tech company is currently faced with rising costs led by training and operating its AI models, especially as its competition with Alphabet's Google is increasing.

As these discussions unfold, the outcome is anticipated to affect OpenAI's future capabilities and market position in the ever-evolving AI landscape.