Another major development is unfolding in the world of Artificial Intelligence (AI). According to reliable sources, early-stage talks are ongoing between OpenAI and Amazon, in which Amazon could invest at least $10 billion (approximately ₹85,000 crore) or more in OpenAI. If this deal materializes, OpenAI's valuation could exceed $500 billion (approximately ₹42 lakh crore).
This deal would provide significant funding for OpenAI and give a major boost to Amazon's AI chips. The talks are still in the preliminary stage, and details may change, but it signals big shifts in the AI industry.
Key Details of the Deal:
- Investment and Valuation: Amazon's investment could exceed $10 billion. This would push OpenAI's valuation above $500 billion. The funding could pave the way for a larger round involving other investors.
- Chip Usage: A key part of the deal is that OpenAI would use Amazon's in-house Trainium chips. These chips are said to be cheaper and more energy-efficient than Nvidia's GPUs, helping OpenAI reduce its dependency on Nvidia.
- Cost Reduction and Scaling: OpenAI CEO Sam Altman has long highlighted the shortage of computing power. Adopting Trainium could significantly lower training and operations costs, which are currently very high due to expensive Nvidia chips.
- Benefits for Amazon: Amazon leads in cloud computing (AWS) but was lagging in AI chips and services compared to Microsoft and Nvidia. Having a top AI company like OpenAI use Trainium would be a major win for Amazon, strengthening AWS's position in AI and challenging Nvidia's monopoly.
- Previous Partnership: In November 2025, OpenAI signed a $38 billion cloud deal with Amazon, primarily involving Nvidia chips (such as GB200 and GB300). This new deal moves toward including Trainium and further diversification.
This agreement exemplifies "circular deals" in the AI sector, where investment money flows back into chips and cloud services. After recent restructuring, OpenAI has more freedom, making deals with partners beyond Microsoft easier.
Explosion in China's AI Chip Market:
Meanwhile, Chinese AI chip company MetaX Integrated Circuits made a blockbuster debut on the Shanghai Stock Exchange. From an IPO price of 104.66 yuan, shares surged nearly 693% to close at 829.90 yuan (intraday high of 895 yuan). The company raised approximately $596 million (about ₹5,000 crore) through the IPO.
- Reasons: Due to U.S. restrictions, access to high-end Nvidia chips is limited. China is emphasizing local chip production. MetaX's founders are former AMD engineers, and the company makes AI training/inference chips.
- Market Impact: This is part of China's self-sufficiency drive. Earlier, Moore Threads' IPO surged over 400%. Although MetaX is currently operating at a loss, investors are betting on AI growth.
- Global Connection: China still lags behind the U.S. in technology but is advancing rapidly. This could pose a long-term challenge for companies like Nvidia.
These two developments are challenging Nvidia's dominance in the AI industry and intensifying competition among big tech companies. OpenAI's hunger for computing power and China's local push are accelerating the global AI race.
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