Amazon in talks to invest in OpenAI, source says

Amazon is in talks to invest in OpenAI, which could value the ChatGPT maker over $500 billion, a source familiar with the matter told Reuters on Tuesday.

The talks between Amazon and the ChatGPT maker are fluid and details are subject to change, the source said, adding that Amazon could invest $10 billion or more, or nothing at all.

Walt Disney is investing $1 billion in OpenAI and will let the startup use characters from Star Wars, Pixar and Marvel franchises in its Sora AI video generator, a deal that could reshape how Hollywood makes content.

The three-year partnership announced on Thursday is a pivotal step in Hollywood’s embrace of generative artificial intelligence, sidestepping the industry’s concerns about the impact of AI on creative jobs and intellectual property rights.

As part of the licensing deal, Sora and ChatGPT Images will start generating videos using licensed Disney characters such as Mickey Mouse, Cinderella and Mufasa, starting early next year. The agreement excludes any talent likenesses or voices.

“Through this collaboration with OpenAI, we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” Disney CEO Bob Iger said.

Hollywood’s unions, which are monitoring the expanding use of generative AI, reacted cautiously to the deal.