Amazon.com Inc is negotiating an investment in OpenAI, the creator of ChatGPT, in a possible agreement that might value the AI firm at more than $500 billion, according to reports.

The possible agreement arises as OpenAI is preparing for an initial public offering that could assess the company’s worth at as much as $1 trillion, as per reports.

According to a source who requested anonymity due to the confidential nature of the discussions, Amazon could potentially invest around $10 billion in OpenAI, although negotiations between the two companies are currently "very fluid."

The strategy emphasizes OpenAI's capacity for broad partnerships following its transition from non-profit origins and the finalization of its agreement with Microsoft.

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The Microsoft agreement transformed OpenAI into a public benefit corporation governed by a non-profit that has an interest in OpenAI's financial prosperity, lifting significant limitations on the company's capacity to attract capital and obtain computing resources.

Microsoft owns a 27 percent share in OpenAI and has obtained exclusive rights to sell OpenAI models to its cloud clientele.

The Information, which initially disclosed the negotiations with Amazon, stated that OpenAI intends to utilize Amazon’s Trainium chips, which rival Nvidia and Google’s chips.

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OpenAI and Microsoft did not promptly reply to Reuters' inquiry regarding the Information report.

The funding from Amazon might open doors for a larger fundraising effort that includes more investors, according to reports.

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OpenAI is seeking to sell an enterprise version of ChatGPT to Amazon; however, it remains uncertain whether the agreement incorporates elements for merging ChatGPT functionalities like AI-enhanced shopping tools that Amazon is creating for its applications, according to reports.