Amazon Bets US$10 Billion on OpenAI to Challenge Nvidia’s Dominance
Amazon is pouring US$10B into OpenAI. Read how this boosts their Trainium chips strategy and impacts the $1T IPO rumors here.
Jakarta, Gotrade News - Amazon.com, Inc. is reportedly gearing up to pour a massive US$10 billion strategic investment into OpenAI. This aggressive play is clearly aimed at closing the gap with Microsoft Corporation and Google in the heated AI race.
A report from The Street suggests this deal will significantly boost Amazon’s reputation in the chip and cloud computing game. It shows the company is dead serious about becoming a main character in global AI infrastructure, rather than just being a utility provider.
Key Takeaways
- Amazon plans to drop a US$10 billion investment in OpenAI to rival Microsoft and Google’s dominance.
- This partnership could be a game-changer for Amazon’s Trainium chips adoption, reducing reliance on Nvidia.
- OpenAI’s IPO valuation is predicted to hit the US$1 trillion mark by 2026 or 2027.
Chip Strategy and Infrastructure Flex
This investment holds massive strategic potential for Amazon's proprietary Trainium and Inferentia processors. The move suggests OpenAI might start leveraging these chips, effectively weaning off their heavy dependence on products from NVIDIA Corporation.
This partnership also helps Amazon clap back at critics claiming AWS services are getting too pricey. Corporate clients will now see a concrete commitment to providing scalable, more cost-effective AI infrastructure.
The Road to a Trillion-Dollar Valuation
Amazon getting onto OpenAI’s cap table comes just as the startup eyes its initial public offering. Analysts represent this move as a significant booster that could push OpenAI’s valuation to break the US$1 trillion barrier by 2026 or 2027.
However, experts are raising flags about the risk of "circular investments" in the current tech ecosystem, according to The Street. This phenomenon—where Big Tech funds startups that turn around and spend that cash right back on the investor's cloud platforms—gives off some serious tech bubble vibes.
Reference:
- The Street, A $1 trillion IPO looms, and Amazon may have just locked in early. Accessed on December 22, 2025
- Featured Image: Shutterstock
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
