Amazon Completes Full $50 Billion Investment in Open AI
Amazon disclosed in its 10-Q filing on July 31 that it had completed its full $50 billion investment in OpenAI. In the first quarter, Amazon invested $15 billion in OpenAI's Series C preferred stock and committed to purchase an additional $35 billion. In the second quarter, Amazon used $13.7 billion of that commitment to purchase OpenAI Series C preferred stock. After the reporting period, Amazon invested the remaining $21.3 billion of its commitment in OpenAI Series C preferred stock. Amazon said that if OpenAI completes an initial public offering or another liquidity event, the Series C preferred stock then outstanding will convert into common stock. Amazon expects to be subject to customary lockup restrictions after an IPO and will remain subject to applicable securities-law restrictions thereafter.
In the first quarter, Amazon invested $15 billion in OpenAI's Series C preferred stock and committed to purchase an additional $35 billion. In the second quarter, Amazon used $13.7 billion of that commitment to purchase OpenAI Series C preferred stock.
After the reporting period, Amazon invested the remaining $21.3 billion of its commitment in OpenAI Series C preferred stock.
Amazon said that if OpenAI completes an initial public offering or another liquidity event, the Series C preferred stock then outstanding will convert into common stock. Amazon expects to be subject to customary lockup restrictions after an IPO and will remain subject to applicable securities-law restrictions thereafter.