OpenAI announced it is raising $110 billion in new funding, pushing its valuation to an estimated $840 billion ahead of a potential mega IPO later this year.
The blockbuster round includes:
• $50B from Amazon
• $30B from SoftBank
• $30B from Nvidia
As part of the deal, Amazon will initially invest $15B, with an additional $35B tied to future conditions.
Strategic AI Partnerships Deepen
The agreement also expands OpenAI’s infrastructure footprint.
OpenAI will gain access to 2 gigawatts of computing capacity powered by Amazon’s Trainium chips, while AWS becomes the exclusive third party cloud provider for OpenAI Frontier, its enterprise AI platform.
Importantly, the move does not alter OpenAI’s existing ties with Microsoft. Azure will remain the exclusive cloud provider for OpenAI’s APIs, and Microsoft retains its IP licensing access across OpenAI models.
AI Investment Arms Race
The funding reflects intensifying competition among tech giants to align with OpenAI as the company ramps up spending on data centers and next generation AI infrastructure.
With Amazon, Nvidia, and SoftBank now deeply involved, the deal signals that the battle for AI dominance is entering a new phase.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related: Nvidia’s $100B OpenAI Deal Was Never a Promise, Jensen Huang Says
