Tech giants conspire for the future of AI: Amazon.com, Inc. plans to invest billions in OpenAI to challenge NVIDIA Corporation's chip dominance.

According to reports, OpenAI is in investment negotiations with Amazon.com, Inc. (AMZN.US), planning to raise $10 billion or more, and considering using Amazon.com, Inc.'s AI chips. Earlier, OpenAI announced last month that it would spend $38 billion over the next seven years to lease server resources from Amazon.com, Inc.'s cloud computing subsidiary, AWS. If this financing is successful, it will help OpenAI fulfill its long-term commitment to lease servers from at least five cloud service providers (including AWS), which are used for the development of its artificial intelligence (AI) models. Three sources familiar with the matter stated that the two sides are also exploring the possibility of a commercial partnership. It is reported that negotiations began last October after OpenAI completed its corporate restructuringby converting equity into traditional stocks, paving the way for a future public listing. It is worth noting that the sources pointed out that negotiations were conducted on the use of Amazon.com, Inc.'s AI chips. If an agreement is reached, Amazon.com, Inc.'s self-developed AI training chip Trainium will have a new client, and it will help the online retail giant expand its influence in the AI field and compete with NVIDIA Corporation (NVDA.US). Previously, there were discussions about how ASIC chips might threaten NVIDIA Corporation's position due to reports that Meta (META.US) is considering using Alphabet Inc. Class C's (GOOGL.US) high-performance AI semiconductor TPU. Similarly, as an alternative to NVIDIA Corporation's AI chips, negotiations between Amazon.com, Inc. and OpenAI may further stir up market discussions. Analysts point out that the Trainium chip is a strategic key for Amazon.com, Inc. to stand out in the AI field and complement its cloud computing business. Although AWS is the largest provider of computing power leasing and data storage services, its market position among AI developers still needs to be strengthened due to fierce competition from companies like Microsoft Corporation (MSFT.US) (Microsoft Corporation is one of OpenAI's main investors). Amazon.com, Inc. hopes to attract business customers with more cost-effective advantages. The company stated that compared to the market-leading NVIDIA Corporation GPU, the Trainium chip can drive high-intensity computing required by AI models at a lower cost and higher efficiency. In a past agreement reached last month, OpenAI explicitly stated that it would obtain NVIDIA Corporation AI chip's computing power support through AWS, but also mentioned the possibility of integrating more chip solutions in the future. However, these negotiations are still in the early stages, and specific terms may change. Representatives from both OpenAI and Amazon.com, Inc. declined to comment. In the most recent employee stock sale, OpenAI's valuation reached $500 billion, surpassing Elon Musk's SpaceX and becoming the world's highest-valued startup. This rapid rise highlights the investment frenzy surrounding AI technology leaders. This technology is believed to have the potential to reshape industries and economic landscapes. However, in recent months, Wall Street analysts have warned of potential bubble risks, partly due to some investment transactions being cyclicalcompanies investing heavily in potential customers to sustain their expenditures on their own products.