Shares of Amazon pared losses Thursday afternoon amid a tech sector downturn. This followed reports that the e-commerce giant is in talks to inject up to $50 billion into OpenAI, the artificial intelligence startup. The potential investment would make Amazon the largest contributor to OpenAI's current fundraising round, which could value the company at around $830 billion.

Amazon CEO Andy Jassy is reportedly leading negotiations with OpenAI CEO Sam Altman. Major tech companies are vying for position in the rapidly evolving AI sector. The deal's structure could still change. Amazon previously invested in Anthropic, an OpenAI competitor, signaling its commitment to generative AI.

OpenAI is seeking significant capital. SoftBank is also in discussions to invest up to $30 billion. The investment reflects the escalating competition in the AI space. This race to secure stakes in leading AI developers is driven by the potential to integrate the technology into various products and services.

Investors will be watching how this deal, if finalized, alters the competitive dynamics of the AI market. The size of Amazon's potential investment suggests a significant strategic bet on OpenAI's long-term prospects. Further announcements regarding the deal structure and its impact on the tech sector are expected.