Amazon May Invest $10B in OpenAI, Boosting Valuation to $500B
Update: 2025-12-17
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Amazon potentially investing billions in OpenAI, valuing it over $500B, as per reports by The Information and CNBC. This follows OpenAIs restructuring into a for-profit entity, making it easier to seek funding from other companies. OpenAI has already committed to over $1T in chip and computing power deals, but its current products arent generating enough revenue, raising questions about its long-term profitability. Some investors express skepticism about these circular deals in the AI industry, viewing them as unsustainable and potentially indicative of an AI bubble.
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