OpenAI just announced it has raised a whopping $110 billion in funding, making it one of the largest private investment rounds ever. This includes a hefty $50 billion from Amazon, and $30 billion each from tech giants Nvidia and SoftBank. With a pre-money valuation of $730 billion, these numbers highlight just how pivotal OpenAI is becoming in the tech landscape.
What’s exciting is that this funding round isn’t even closed yet. OpenAI is expecting more investors to come onboard as it progresses. The company believes we are entering a phase where advanced AI becomes part of everyday life, emphasizing the need for companies that can scale their infrastructure quickly.
To support this growth, OpenAI is forming key partnerships with Amazon and Nvidia. Most of the funding might come in the form of services instead of direct cash, though specifics haven’t been shared.
Reflecting back, OpenAI’s last funding round in March 2025 raised $40 billion and had a valuation of $300 billion, setting a record at the time.
As part of the collaboration with Amazon, they plan to create a new “stateful runtime environment” where OpenAI models will operate on Amazon’s Bedrock platform. OpenAI is set to expand its previous $38 billion cloud computing partnership with Amazon by an additional $100 billion. This deal involves OpenAI using at least 2GW of Amazon’s advanced computing power while also building custom models for Amazon products.
Amazon’s CEO, Andy Jassy, noted the excitement from developers looking to run AI services on AWS. He sees this unique partnership with OpenAI as a game-changer for those building AI applications.
However, there are conditions tied to Amazon’s investment. Reports suggest that up to $35 billion of it depends on OpenAI achieving Artificial General Intelligence (AGI) or going public by the end of the year.
While details on Nvidia’s involvement are a bit scarce, it’s known that they’ve committed to providing significant computational capacity. Nvidia’s CEO, Jensen Huang, has been vocal about their support for OpenAI, reinforcing their commitment despite any speculation about backing away.
The implications of these partnerships are enormous. As AI capabilities expand, we’re likely to see new tools and applications that can transform industries. With AI becoming more integrated into our daily lives, the race among companies to lead in this space is heating up.
For more insights on OpenAI’s funding and its impact, you can check additional coverage from trusted sources like CNBC.
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