Jaeden Schafer

They want to, like, scoop up the other 40% of the market that isn't Anthropic and OpenAI and Google and Meta and...

and and xai so like i just think i don't know if that's the exact reason i think they really truly do want a piece of opening i they want the circular deal where they were getting more money back into their ecosystem and it's going to boost their stock price this is just a couple months after opening i completed its uh transition to a for-profit company

This is something that gives them a lot more flexibility to do capital raises that Microsoft doesn't have to approve of.

I think this is one of the earliest backers and holders.

They have a 27% stake.

Microsoft is a 27% stake in OpenAI to date.

So this Amazon investment would be pretty big.

And it's also something that might only be possible now that they're...

private company or a for profit company, sorry, because now that Microsoft doesn't have kind of this controlling edge in the past, Microsoft was because the Microsoft's original deal where they gave them $10 billion way back in the day that kicked off this whole AI boom was, you know, they're buying a huge chunk of the company.

And they said, we have to approve all future investments and where you're putting your money when it comes to compute and all of that kind of stuff.

because Microsoft wanted to sort of be their exclusive with Microsoft Azure.

Now, as it turns out, there wasn't enough compute and they needed a lot more resources.

They needed to spread things out and to, you know, put all their eggs in one basket with Microsoft.

So they've kind of broken away from that.

And now they're able to, you know, we see them training with a lot of different platforms, AWS being one of those.

And Amazon investment right now, I think, is probably the latest example of this circular deal that we're seeing in the AI sector.

Essentially, in all of these arrangements, the huge cloud and hardware providers, they back the latest AI firms, and then those startups essentially commit to using their investors' data centers and chips to train their models.

So this is what I think is going to be standard in this deal, although we don't have those specific details.

You can imagine this is why it's happening.

Back in March, OpenAI invested $350 million into CoreWeave.