The Financial Post reports in its Saturday edition that OpenAI is in initial discussions to raise at least $10-billion (U.S.) from Amazon and use its chips, a potential win for the on-line retailer's effort to broaden its AI industry presence and compete with Nvidia.
A Bloomberg dispatch to the Post says the deal under discussion could value OpenAI north of $500-billion (U.S.) and see it adopt Amazon's Trainium chip.
Talks, however, are at a preliminary stage and terms could change.
A deal would mark a win for Amazon's fledgling semiconductor division. While Nvidia dominates the market for the powerful chips required to create artificial-intelligence platforms, developers such as Meta Platforms are starting to explore rival offerings from the likes of Alphabet's Google.
The Trainium chip is a key element of Amazon's strategy to stand out in AI, complementing its cloud division.
Amazon hopes to entice companies looking for a bargain. Trainium chips are capable of powering the intensive calculations behind AI models more cheaply and efficiently than Nvidia's market-leading graphics processing units, according to the company.
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