Amazon, Nvidia, Softbank Invest $110B in OpenAI
▼ Summary
– OpenAI has secured a new $110 billion funding round, bringing its valuation to $730 billion and noting it has over 900 million weekly active users and 50 million subscribers.
– Amazon is investing $50 billion in a strategic partnership to collaborate on custom AI models and integrate OpenAI’s enterprise platform with its AWS infrastructure and chips.
– Nvidia and SoftBank are each contributing $30 billion, though Nvidia’s earlier $100 billion investment plan is reportedly paused.
– The deal with Amazon follows a reworked agreement with Microsoft, which has also begun working with competitor Anthropic, while OpenAI reaffirmed its commitment to Microsoft.
– Amidst this funding, OpenAI is rumored to be launching a smart speaker, striking content deals, facing competition, and is open to a future IPO.
The artificial intelligence sector has witnessed a monumental financial commitment, with OpenAI securing a staggering $110 billion in new funding. This capital infusion, led by major technology and investment firms, underscores the intense competition and high stakes in the AI landscape. The company, which reports over 900 million weekly active users and more than 50 million consumer subscribers for its ChatGPT platform, now holds a valuation of $730 billion. This round follows a previous record-setting $40 billion investment in 2025, further solidifying its position as a dominant force.
Amazon is contributing $50 billion to this funding round, a move that extends far beyond a simple financial transaction. The investment is part of a strategic partnership designed to accelerate Amazon’s capabilities in the AI arena. A core component of this collaboration involves the joint development of custom AI models. These models are expected to enhance customer-facing applications, with a significant focus on revitalizing and advancing the Alexa voice assistant. Furthermore, Amazon Web Services (AWS) will become a third-party cloud provider for OpenAI Frontier, the enterprise platform for building and managing AI agents. These agents will operate on Amazon’s proprietary Trainium chips. The funding is structured with $15 billion provided initially, and the remaining $35 billion contingent upon OpenAI achieving specific, undisclosed technical milestones.
Nvidia and SoftBank are each investing $30 billion, signaling continued confidence in OpenAI’s trajectory despite a shifting investment landscape. Notably, reports suggest that a separate, previously considered $100 billion investment plan from Nvidia has been paused. This new capital from all parties represents a massive vote of confidence as OpenAI navigates a period of rapid expansion and intensifying rivalry.
Amidst this financial maneuvering, OpenAI has explicitly reaffirmed its ongoing partnership with Microsoft. However, a recent adjustment to their exclusive agreement has granted OpenAI the flexibility to engage with other partners, such as Amazon. This change mirrors Microsoft’s own strategic diversification, which includes forming a significant partnership with Anthropic, a key OpenAI competitor. The AI field is becoming increasingly crowded, with firms like Anthropic and Google presenting formidable challenges.
Looking ahead, OpenAI is rumored to be preparing a smart speaker for launch in early 2027 and is actively pursuing content licensing agreements, including a potential deal with Disney. On the corporate front, the possibility of an initial public offering remains on the table. CEO Sam Altman has stated the company is open to going public when the timing is appropriate, suggesting that this latest funding round may be a step toward that eventual goal.
(Source: The Verge)
