By Nauman Khan
Publication Date: 2025-12-18 11:46:00
This article first appeared on GuruFocus.
Shares of Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) slid about 4% Wednesday after reports surfaced that Amazon (NASDAQ:AMZN) is in discussions to invest roughly $10 billion in OpenAI.
The move would involve OpenAI using Amazon’s in-house Trainium chips, potentially limiting future hardware purchases from Nvidia and Broadcom.
Amazon and OpenAI did not immediately comment on the reports. The two firms already have a partnership, with a $38 billion AWS deal signed in November, which relied on Nvidia chips rather than Amazon’s Trainium processors.
Trainium hardware is central to Amazon’s strategy to reduce reliance on external AI chips. Amazon recently unveiled UltraServers powered by up to 144 Trainium 3 chips, offering more than four times the previous generation’s performance.
The potential investment could boost custom-chip designer Marvell Technology (NASDAQ:MRVL), which has…
