SEATTLE, Washington: Amazon is exploring a major investment that would deepen its ties to one of the world's most influential artificial intelligence companies, as the race to secure computing power and AI partnerships accelerates.

Amazon.com Inc. is in talks to invest in ChatGPT-maker OpenAI in a potential deal that could value the artificial intelligence firm at more than US$500 billion, a source familiar with the matter told Reuters.

Amazon may invest about $10 billion in OpenAI, but the discussions between the two companies are "very fluid," the source said.

The potential investment underscores the AI industry's insatiable appetite for computing capacity as companies pour billions into developing systems that rival or exceed human intelligence.

Several technology firms have already struck multibillion-dollar agreements with OpenAI this year. Nvidia and Oracle have both signed major AI-related deals with the company, while OpenAI in November agreed to a $38 billion deal to purchase cloud services from Amazon.

At the same time, investors are increasingly watching for signs that demand for AI services could slow, or that the massive capital outlays required to build and run these systems may not deliver the expected returns.

The discussions between Amazon and OpenAI come as the AI firm lays the groundwork for an initial public offering that could value it at up to $1 trillion, Reuters reported in October.

The talks also highlight OpenAI's growing flexibility to strike partnerships following its move away from its non-profit roots and the restructuring of its relationship with Microsoft, the source said.

Under that deal, OpenAI became a public benefit corporation controlled by a non-profit entity that retains a stake in its financial success. The structure removed key constraints on OpenAI's ability to raise capital and secure the computing resources it needs to scale its technology.

Microsoft holds a 27 percent stake in OpenAI and has an exclusive right to sell OpenAI models to its cloud customers.

Amazon, OpenAI, and Microsoft did not immediately respond to Reuters' requests for comment.

The Information, which first reported the talks, said OpenAI plans to use Amazon's Trainium chips, which compete with Nvidia and Google's chips, and added that Amazon's financing could be part of a broader fundraising round that includes other investors.

According to the report, OpenAI is also in talks to sell an enterprise version of ChatGPT to Amazon. It remains unclear whether the discussions include provisions to integrate ChatGPT features such as shopping tools into Amazon's own apps, the report said.

If completed, the deal would further cement Amazon's role as a key infrastructure provider to the rapidly expanding AI ecosystem, even as competition among cloud and chipmakers intensifies.