The world of artificial intelligence is experiencing major shifts that are changing the balance of power between tech giants. While OpenAI previously focused exclusively on its partnership with Microsoft, Amazon is now actively entering the scene. According to the Financial Times, the American retailer and cloud provider has invested colossal funds into the startup, becoming one of the key players in its development.
Deal history and investment terms
The agreement between the companies was reached back in February. Amazon invested $15 billion in OpenAI, committing to increase the investment amount to $50 billion upon achieving certain milestones. These goals include breakthroughs in AI system development and OpenAI's IPO. Although an IPO is planned, experts do not expect it before 2027. Nevertheless, OpenAI has since demonstrated visible success in developing its AI models.
As a result of the latest tranches, Amazon now owns approximately 5% of OpenAI's capital. The startup received the final tranche of investments within the agreed amount last week. This became possible after OpenAI gained the right to attract capacity from other cloud providers in April, without prioritizing Microsoft. Initially, Microsoft was ready to challenge the agreement in court, but the contract terms were revised to accommodate its wishes.
Strategic partnership and chip supply
The cooperation goes beyond simple financial support. The companies are linked by several major agreements concerning the supply of semiconductor components and the leasing of computing power. In turn, OpenAI is ready to provide Amazon with its AI models. This enhancement will allow the startup to train more modern and powerful models.
It is important to note that Amazon does not limit its support to just one player. The company also cooperates with the competing startup Anthropic, founded by former OpenAI employees. AWS is ready to supply both startups with its own Trainium chips. Furthermore, AWS is interested in having both startups offer their AI models to its cloud customers.
Investments in Anthropic and Jeff Bezos's role
Parallel to the capital injection into OpenAI, Amazon is actively investing in Anthropic. The company founded by Jeff Bezos has already invested $18 billion into this startup's capital, but the accumulated amount could be increased to $33 billion. Such a strategy allows Amazon to diversify risks and ensure its cloud services have access to cutting-edge technologies from different developers.
