Amazon reportedly plans to invest hundreds of millions of dollars in OpenAI, heavily promoting its own chips Trainium to challenge NVIDIA's dominance

OpenAI is reportedly planning to raise funds at a valuation of $750 billion, with Amazon potentially investing over $10 billion to deepen collaboration on Trainium chips.
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According to The Information, OpenAI is in talks with Amazon for a new round of hundreds of billions of dollars in financing, with a valuation reaching $750 billion (about NT$24 trillion). If the deal is finalized, this company will remain one of the highest-valued unlisted companies globally.

Valuation jumps three levels

Just two months ago, OpenAI transferred old shares in the secondary market at a valuation of $500 billion, a 50% increase from the previous round. Based on SoftBank’s implied share price and the private placement record in November, the $750 billion valuation has already appeared among off-market capital. Compared to an estimated revenue of $3 billion this year, even with a lower valuation of $500 billion, the revenue multiple reaches 167x, far exceeding the typical SaaS company multiple of about 15–20x.

Investors are betting on OpenAI’s leading position in the AGI race, which could lead to long-term monopoly cash flow, even if they tolerate the current rapid spending. Research firms estimate that OpenAI’s cash expenditure could reach as high as $47 billion by 2028, meaning the company must continually return to the capital markets for funding.

Amazon’s Compute Alliance and Billion-Dollar Investment Rumors

While the valuation soars, OpenAI is also paving the way to reduce costs. It is reported that the company has confirmed the adoption of Amazon AWS’s Trainium 2 chips for training models like GPT-5 and beyond, with official claims that these chips offer four times the cost-performance ratio of comparable GPUs. By renting more AWS data centers, OpenAI further implements a “multi-cloud” strategy, reducing reliance on Microsoft Azure and Nvidia H100.

In summary, the news of OpenAI’s valuation challenge of $750 billion, combined with Amazon’s dual moves in chips and capital, pushes the market consensus on “AI winner takes all” to new heights. Whether this high valuation and high spending can be sustained long-term remains to be seen, and ultimately depends on how quickly OpenAI can monetize AI.