OpenAI is in early talks to raise about 10 billion dollars from Amazon.com Inc. and potentially adopt the tech giant’s in-house AI chips.

The discussions, which remain preliminary, could value OpenAI at more than 500 billion dollars and involve the ChatGPT maker using Amazon’s Trainium chips, according to a person familiar with the matter, bloomberg reported.

Such a deal would be a significant win for Amazon’s relatively young semiconductor unit and would reinforce its cloud arm, Amazon Web Services, the world’s largest provider of rented computing power and data storage.

For Amazon, a deal with OpenAI would validate its effort to challenge Nvidia’s dominance in AI hardware and reduce the industry’s reliance on a single chipmaker.

It would also strengthen AWS’s (Amazon Web Services) position at a time when Microsoft has leveraged its OpenAI partnership to gain an edge in AI services.

Despite its dominance in cloud infrastructure, AWS has struggled to secure the same level of loyalty among AI developers amid fierce competition from rivals such as Microsoft Corp., one of OpenAI’s biggest backers.

Officials at Amazon say its Trainium chips can perform the heavy computations required by AI models more cheaply and efficiently than Nvidia Corp.’s market-leading graphics processing units.

Talks between OpenAI and Amazon began around October, following a major corporate restructuring at OpenAI. As part of that overhaul, Microsoft took a 27 percent ownership stake after negotiations that stretched nearly a year.

OpenAI was most recently valued at around $500 billion during an employee share sale, briefly surpassing Elon Musk’s SpaceX to become the world’s most valuable startup.

Last month, OpenAI and Amazon announced a separate agreement under which AWS will provide the startup with 38 billion dollars worth of cloud computing services over seven years, earlier reports indicate.