Amazon is in early discussions to speculate as a lot as $10 billion in OpenAI in a deal that may see the AI lab utilizing the e-commerce large’s AI chips, CNBC reported.

If it materializes, the deal would worth OpenAI at greater than $500 billion, Bloomberg reported, citing an nameless supply.

Amazon has been seeking to diversify its bets within the AI race, which has up to now seen it companion up and make investments $8 billion in Anthropic, a rival to OpenAI. The e-commerce large earlier this month additionally unveiled the most recent iteration in its Trainium series of chips, and outlined the event of the subsequent installment of these chips, complementing its cloud computing choices through Amazon Net Companies.

Information of the deal comes a pair months after OpenAI completed its transition to a for-profit model, which supplies it extra freedom to strike offers with traders apart from Microsoft, one of many firm’s earliest backers with a stake of 27%.

Amazon investing in OpenAI would mark the most recent in a sequence of circular deals within the AI area — main {hardware} producers and cloud suppliers strike offers with younger AI corporations to make use of their merchandise, whereas the upstarts decide to utilizing their knowledge facilities and chips for coaching their AI fashions.

This previous March, OpenAI invested $350 million of fairness into CoreWeave, which used the funds to purchase chips from its backer Nvidia. Those self same chips present compute to OpenAI, which will increase CoreWeave’s income and in the long run makes OpenAI’s stake extra useful. Then in October, OpenAI signed a deal to select up a ten% stake in AMD and committed to using the chipmaker’s AI GPUs, and in addition signed a chip usage agreement with Broadcom that month. And in November, the ChatGPT maker signed a $38 billion cloud computing deal with Amazon.

OpenAI and Amazon didn’t instantly reply to requests for remark.