Jaeden Schafer

Amazon is reportedly in talks with OpenAI to invest $10 billion into the startup.

These are these kind of circular deals that we see being very popular today where essentially Amazon will invest $10 billion into OpenAI with kind of the understanding that OpenAI is going to turn around and spend those $10 billion on AWS for compute.

This is good for both companies because OpenAI gets the $10 billion investment, which is amazing for them.

And Amazon gets a chunk of the company, plus they get to mark up, you know, $10 billion in revenue to AWS when that money gets spent back.

So it's kind of the money goes both ways.

And with companies that are, you know, really heavily reliant on investors and the stock market, it's great for Amazon's stock price to say, look, we got another $10 billion.

And it's great for OpenAI to say, look, someone invested another $10 billion into our company.

It's interesting that the people investing money, though, are chip makers and anyone making hardware that OpenAI needs to buy, or data centers, people like Oracle.

And then, of course, we have companies like Amazon with AWS and all of their web servers.

So this is an interesting deal that seems to be more and more popular.

We're going to break down the deal, who broke it, and what the sources are saying about all of this.

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All right, let's get into the story right now.

So this was reported by CNBC and Bloomberg, who were both discussing this.

The investment in OpenAI, this $10 billion investment from Amazon, would give it a valuation of $500 billion, almost half a trillion dollars as a private company

This is absolutely phenomenal.