Tech heavyweight Amazon is working on a deal with OpenAI that could see it invest upto $50 billion, as per a Reuters report on Thursday.
The update comes amid a swell in competition between Silicon Valley firms and in the broader tech sector, with companies either looking to partner with or acquire pure-play AI companies or resorting to developing their own AI-focused products and services.
This is not the first time both companies have tried working towards investment. An earlier report in 2025 stated that Amazon was looking to invest upto $10 billion in OpenAI.
If executed, the deal is expected to give Amazon ownership in the largest privately owned AI company by valuation, also giving OpenAI much-needed capital to service its operations, R&D, and infrastructure projects. OpenAI is still looking for more investment of upto $100 billion, which would increase its valuation to $830 billion.
Amazon is no laggard in the race to AI dominance, with multiple announcements last year focused on growing its presence in the sector, including a $15 billion bond sale for relevant infrastructure, a $38 billion partnership between AWS and OpenAI, and a proposed $50 billion investment in AI infrastructure.
With the substantial list of initiatives aimed at growth, a common accusation arises among speculators—that Amazon, along with the rest of the tech sector, is benefiting from these announcements as they increase share prices, allowing them to either borrow more money from debt markets or raise more equity at buffed-up share prices.
At the time of writing, Amazon shares were trading at $241.73.