Amazon has committed to a significant investment of up to $50 billion in OpenAI, announced on Friday by CEOs Sam Altman and Andy Jassy. This investment will unfold in two phases, starting with $15 billion in OpenAI Series C Preferred Stock due by March 31, followed by a contingent $35 billion investment that hinges on specific triggers outlined in SEC filings.
The total funding round for OpenAI amounts to $110 billion, with a pre-money valuation of $730 billion. Other notable contributors include SoftBank and Nvidia, each investing $30 billion. Microsoft, while not currently participating in this round, retains an option to join, maintaining its existing partnership with OpenAI.
The deal's structure includes provisions for Amazon to acquire its remaining shares at its discretion, but certain events, such as a “Mandatory Funding Event” or an initial public offering by OpenAI, could obligate Amazon to act within specified timeframes. The exact details of these triggering events remain undisclosed in the filings.