Amazon is reportedly in talks to invest as much as $50 billion into Sam Altman's OpenAI -- in what would be a bombshell bet on the ChatGPT creator.

Amazon is in talks to invest up to $50 billion in OpenAI, CNBC confirmed on Thursday, in a significant vote of confidence from the e-commerce giant after it invested in one of the startup's biggest rivals. OpenAI CEO Sam Altman and Amazon CEO Andy Jassy have been engaging in the discussions directly, according to a source familiar with the matter who asked not to be named because the details are confidential.

Amazon is discussing investing as much as $50 billion in OpenAI, The Wall Street Journal reported Thursday (Jan. 29), citing unnamed sources. The move that would mark one of the largest single bets yet on the artificial intelligence company behind ChatGPT and deepen Amazon's role in the fast-consolidating AI infrastructure race, the report said.

Amazon is considering a $50 billion investment into the artificial intelligence company, OpenAI, making it the largest contributor to date.

OpenAI, a company already valued at $500 billion, has made it known that it's on the hunt for another $100 billion in investment. Such a funding round could lead the company's valuation to shoot up to a titanic $830 billion.

Amazon and Alphabet are benefiting from the momentous changes brought by artificial intelligence. Both tech conglomerates are successfully integrating AI into their operations, as evidenced by growing sales and gross profit margin.

This is a developing story. Check back for updates.

Amazon.com, Inc. remains a Strong Buy, with a $319.56 price target and 32% upside, despite recent underperformance versus the S&P 500. Cloud, AI, and the Kuiper satellite project position AMZN to capitalize on mega trends, driving long-term revenue and margin growth. High capital intensity from AI and cloud investments pressures free cash flow, but robust demand and customer contracts underpin near-term ROI.

Amazon.com Inc (NASDAQ:AMZN) is expected to report fourth quarter results on February 5, with Wedbush analysts noting that investor sentiment has been improving ahead of the release and reiterating an ‘Outperform' rating and a $340 price target. Shares are currently traded at about $240, up about 4% in the year-to-date.