Dec 16 (Reuters) - Amazon.com Inc is currently in discussions to invest in OpenAI, the developer behind ChatGPT, in a potential agreement that could push the artificial intelligence company's value beyond $500 billion, according to a person with knowledge of the situation.

Amazon's potential contribution could reach around $10 billion, although talks remain in early stages and may change, the source noted, speaking anonymously due to the confidential nature of the discussions.

This possible partnership reflects the growing need for advanced computing resources in the AI industry, as companies compete to create systems with capabilities equal to or exceeding those of humans.

Earlier this year, OpenAI secured multi-billion-dollar agreements with companies like Nvidia and Oracle. In November, it also entered into a $38 billion arrangement to purchase cloud services from Amazon.

Despite this rapid growth, some investors are growing cautious, watching closely for signs that the AI boom could be slowing or that the significant spending might not generate the expected returns.

The conversations between Amazon and OpenAI emerge as the AI heavyweight explores steps toward a possible initial public offering, which could value the company as high as $1 trillion, as previously reported in October.

This move signals OpenAI's expanding partnership strategy after evolving from its non-profit status and formalizing its agreement with Microsoft, the source explained.

Under the deal with Microsoft, OpenAI became a public benefit corporation overseen by a non-profit organization, which now shares in the company's financial outcomes. This change provided OpenAI with more flexibility to raise funds and access computational support.

Microsoft owns a 27% stake in OpenAI and has secured exclusive rights to distribute OpenAI's models through its cloud services.

Representatives for OpenAI, Amazon, and Microsoft were not immediately available to comment when contacted by Reuters.

The Information, which initially disclosed the talks, reported that OpenAI intends to use Amazon’s Trainium chips—direct competitors to hardware from Nvidia and Google—and noted that Amazon's potential investment could spark a larger fundraising effort involving other parties.

The report also mentioned that OpenAI may sell a business-grade version of ChatGPT to Amazon, though it’s unclear whether this arrangement would include additions such as shopping tools that Amazon may be developing for its own services.