Amazon is currently exploring the possibility of investing up to $10 billion in OpenAI, according to a CNBC report. This potential agreement would involve the AI lab utilizing Amazon’s specialized AI chips. Should the deal proceed, it would value OpenAI at over $500 billion, as reported by Bloomberg, which cited an anonymous source.

In the competitive AI landscape, Amazon has been actively expanding its portfolio. The company has already partnered with and invested $8 billion in Anthropic, a direct competitor to OpenAI. Earlier this month, Amazon introduced the newest version of its Trainium chip series and announced plans for the next generation of these processors, enhancing its cloud computing services through Amazon Web Services.

This potential investment follows OpenAI’s recent transition to a for-profit structure, completed a few months ago. This shift provides OpenAI greater flexibility to engage with investors beyond Microsoft, an early supporter that holds a 27% stake in the company.

An Amazon investment in OpenAI would represent another example of the interconnected deals shaping the AI industry. Major hardware manufacturers and cloud providers frequently partner with emerging AI firms, offering their products while securing commitments for the use of their data centers and chips.

Earlier this year, in March, OpenAI made a $350 million equity investment in CoreWeave. CoreWeave used these funds to purchase chips from Nvidia, which also backs OpenAI. These chips supply computing power to OpenAI, boosting CoreWeave’s revenue and ultimately increasing the value of OpenAI’s stake.

Then, in October, OpenAI agreed to acquire a 10% stake in AMD and committed to using AMD’s AI GPUs. That same month, OpenAI also entered into a chip usage agreement with Broadcom. The following month, in November, the maker of ChatGPT finalized a $38 billion cloud computing deal with Amazon.

Both OpenAI and Amazon have not yet responded to requests for comment on these developments.