Amazon's AI Ambitions Gain Catalyst With OpenAI Investment Talks

about 1 month ago

Valerie Titel

"And good morning, Nathan. It's looking like it could uh could pose some threat to Nvidia's market share in AI chips. It's rising 1.7% in the pre-market, leading the Mag 7 this morning after it was announced that they are in talks to invest 10 billion or more in Open AI. And the deal would see OpenAI use an Amazon's tranium chip. So, this is a big win for Amazon's AI ambitions to compete with the likes of Nvidia in this very competitive, very lucrative AI chip race. The deal would also value OpenAI north of $500 billion. And we know we're tracking that as there is all of this talk floating around about OpenAI potentially IPOing in the next few years. So, they've notched up their valuation even further and signed this deal with Amazon, likely using their chips off the back of that."

The commentary highlights Amazon's strategic move in leveraging a potential $10 billion investment in OpenAI to boost its competitiveness in the AI chip market against Nvidia. The pre-market lift and the scale of the deal signal strong bullish sentiment on Amazon's future in AI, with expectations of broader market impact from the associated catalyst of an OpenAI IPO in the coming years.

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