Amazon could invest up to $50 billion in OpenAI in coming weeks, source says

Amazon is in talks to invest up to $50 billion in OpenAI, CNBC confirmed on Thursday, in a significant vote of confidence from the e-commerce giant after it invested in one of the startup's biggest rivals.

OpenAI CEO Sam Altman and Amazon CEO Andy Jassy have been engaging in the discussions directly, according to a source familiar with the matter who asked not to be named because the details are confidential.

The details are still fluid and the final total is subject to change, but the term sheet could be signed in the coming weeks, the person said.

Amazon declined to comment. The Wall Street Journal was first to report the $50 billion figure.

OpenAI was founded as a nonprofit research lab in 2015, and it exploded into the mainstream in 2022 after launching its generative chatbot ChatGPT. OpenAI has grown into one of the largest commercial entities on the planet, and its valuation swelled to $500 billion in October after it finalized a secondary share sale.

Amazon and OpenAI have been in talks about a potential investment since last year, and the final deal could include an agreement to use Amazon's AI chips, as CNBC previously reported.

--CNBC's Annie Palmer contributed to this report

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