Amazon in OpenAI Talks for Custom AI, Investment

Amazon invests in OpenAI access, launches its own free Alexa+ AI assistant

  • Amazon is negotiating a commercial deal for “special access” to OpenAI‘s technology, aiming to tune its AI models for products like the Alexa voice assistant.
  • The e-commerce giant is also in talks, led by CEOs Andy Jassy and Sam Altman, to invest up to $50 billion in OpenAI as part of its push to raise up to $100 billion.
  • Simultaneously, Amazon has fully launched its own generative AI product, Alexa+, across the U.S., offering it free to Prime members.

According to recent reports, Amazon.com Inc. (AMZN) is currently in high-stakes discussions with OpenAI to secure a customized commercial agreement for its AI models. This potential partnership, involving direct talks between CEOs Andy Jassy and Sam Altman, could see OpenAI‘s technology integrated into Amazon‘s ecosystem, including the Alexa voice assistant.

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The commercial agreement being discussed involves tuning OpenAI’s models to respond in a way Amazon prefers. Concurrently, Amazon is in talks to invest up to $50 billion in OpenAI, which is seeking to raise up to $100 billion at a valuation near $830 billion. However, Amazon has already invested $8 billion in OpenAI’s rival, Anthropic.

Meanwhile, Amazon announced the U.S.-wide rollout of its generative AI voice assistant, Alexa+. The service is free for Prime members, while others pay $19.99 per month, and tens of millions have joined its early access program. Consequently, these strategic moves highlight Amazon‘s aggressive push to dominate the consumer AI space on multiple fronts.

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