OpenAI Secures $110B in Record-Breaking Funding Round
▼ Summary
– OpenAI has raised $110 billion in a private funding round, with investments of $50 billion from Amazon and $30 billion each from Nvidia and SoftBank, at a $730 billion pre-money valuation.
– The funding round remains open, with OpenAI expecting more investors to join as it proceeds into a new phase of scaling frontier AI for global daily use.
– As part of the investment, OpenAI is launching significant infrastructure partnerships, including a new stateful runtime environment on Amazon’s Bedrock and a major expansion of its AWS compute commitment.
– A portion of Amazon’s $50 billion investment, specifically $35 billion, is contingent on OpenAI achieving certain conditions, such as reaching AGI or completing an IPO by year’s end.
– OpenAI has also committed to using substantial dedicated compute capacity from Nvidia as part of their partnership, involving both inference and training systems.
OpenAI has secured a monumental $110 billion in private funding, marking one of the most significant capital raises in corporate history. This colossal investment round, which remains open to additional participants, is anchored by major contributions from Amazon, Nvidia, and SoftBank. The funding arrives at a pivotal moment as the company transitions its frontier artificial intelligence research into globally scalable, everyday applications. According to OpenAI, the next era of leadership will be determined by which organizations can most rapidly build and deploy the immense infrastructure required to meet soaring demand.
The financial structure of this landmark deal includes a $50 billion commitment from Amazon and $30 billion each from Nvidia and SoftBank, valuing the AI pioneer at a staggering $730 billion before the new capital infusion. A substantial portion of these investments is expected to be delivered through cloud services and compute credits rather than pure cash, continuing a trend from earlier funding rounds. This latest achievement dramatically overshadows the company’s previous record-setting round in March 2025, which raised $40 billion.
Central to the announcement are deep infrastructure partnerships forged with key investors. The collaboration with Amazon will see OpenAI developing a novel “stateful runtime environment” where its advanced models will operate on Amazon’s Bedrock platform. This initiative significantly expands a prior agreement, adding an extraordinary $100 billion to a previously announced $38 billion commitment for Amazon Web Services (AWS) compute. As part of this expanded deal, OpenAI has pledged to utilize at least 2GW of power from AWS’s specialized Tranium compute systems and will also create custom AI models for Amazon’s consumer products.
Amazon CEO Andy Jassy emphasized the strategic importance of this alliance, noting the high demand from developers to run OpenAI-powered services on AWS. He stated that the unique collaboration to provide stateful runtime environments will fundamentally expand possibilities for customers building sophisticated AI applications and autonomous agents.
While details on the Nvidia partnership were less extensive, OpenAI confirmed it involves a commitment to leverage “3GW of dedicated inference capacity and 2GW of training on Vera Rubin systems.” Nvidia’s participation follows months of industry speculation about the scale of its investment, with CEO Jensen Huang previously affirming the company’s strong belief in OpenAI’s groundbreaking work and its intention to invest substantially.
Reports from The Information indicated that a portion of Amazon’s investment, specifically $35 billion, might be contingent on OpenAI either achieving Artificial General Intelligence (AGI) or completing an initial public offering by year’s end. OpenAI’s official statement acknowledges this conditional component, confirming that the additional $35 billion will be secured in the coming months once certain, unspecified milestones are met.
(Source: TechCrunch)
