OpenAI lands record $110B funding
OpenAI has closed a historic $110 billion private funding round, the largest ever in the tech industry. The round, led by Amazon, Nvidia, and SoftBank, pushes OpenAI's valuation to a staggering $730 billion. The capital is aimed at massively scaling its AI infrastructure and model development.
This latest capital injection more than doubles the $40 billion OpenAI raised in March 2025, which was itself the largest private tech deal on record at the time. The new funding catapults OpenAI's valuation to $840 billion post-money. For comparison, the largest IPO in history was Saudi Aramco at $29.4 billion, less than a third of this single funding round. The deal includes a significant strategic partnership with Amazon Web Services, making AWS the exclusive third-party cloud provider for OpenAI's new "Frontier" enterprise program. As part of the agreement, OpenAI will utilize 2 gigawatts of Amazon's in-house Trainium AI chips. Amazon's $50 billion investment is structured with an initial $15 billion, and a further $35 billion contingent on OpenAI achieving certain milestones, potentially including an IPO or the development of artificial general intelligence. Despite its massive valuation and revenue that hit an estimated $20 billion in 2025, OpenAI is projected to have lost $8 billion in the same year. The company's spending is immense, with internal forecasts projecting a cumulative loss of $115 billion by 2029 as it invests heavily in computational power and talent. This funding arrives as competition in the AI space intensifies. Just weeks prior, OpenAI's main rival, Anthropic, closed a $30 billion funding round, valuing it at $380 billion. The investment race highlights the enormous capital required to build and scale cutting-edge AI, with OpenAI itself disclosing plans to invest approximately $600 billion in computing power by 2030.
