OpenAI is negotiating with Amazon to seek at least $10 billion in funding and plans to use its AI chip.

According to three sources familiar with the matter, Amazon is in talks to invest at least $10 billion in OpenAI. One of the sources said that the deal would value OpenAI at over $500 billion. Amazon's investment will help OpenAI fulfill its commitment to lease servers from cloud service providers, including Amazon Web Services. OpenAI announced last month that it will invest $38 billion over the next seven years in leasing servers from AWS, making AWS one of at least five cloud service providers that OpenAI will use for developing artificial intelligence. The deal could also help Amazon find new customers for its Trainium AI server chip, which is currently competing with the Nvidia AI chips that OpenAI primarily uses. Two sources said that as part of the negotiations, OpenAI plans to use the Trainium chip. However, Amazon will not be able to sell OpenAI models to its cloud customers, as Microsoft, which owns about 27% of OpenAI, has exclusive sales rights.