OpenAI Closes Record $110B Funding Round
OpenAI has completed a historic $110 billion funding round, the largest private capital raise in tech history, pushing its valuation to $730 billion. The round was led by Amazon, Nvidia, and SoftBank. As part of the deal, Amazon Web Services will become the exclusive third-party cloud provider for OpenAI's new "Frontier" models and will co-develop enterprise-grade AI applications.
This latest funding round saw Amazon commit $50 billion, with Nvidia and SoftBank each adding $30 billion. Amazon's investment will be staggered, starting with an initial $15 billion, with the remaining $35 billion contingent on meeting certain conditions. The new capital propels OpenAI's valuation from $500 billion in October 2025, demonstrating a remarkable increase in perceived value in just a few months. For comparison, the company was valued at $300 billion in a funding round in March 2025. The "Frontier" platform at the center of the AWS deal is an enterprise-grade system for building and managing teams of AI agents. Launched in February 2026, it treats AI agents like employees with specific onboarding and governance. Early adopters include major companies like Uber, Intuit, and State Farm. While AWS gains exclusivity for third-party distribution of Frontier, OpenAI's foundational partnership with Microsoft remains intact. Microsoft Azure continues to be the exclusive cloud provider for OpenAI's core, first-party products and its stateless APIs. The agreement with Amazon expands on a previous partnership, adding $100 billion in cloud spending over the next eight years. As part of the deal, OpenAI will consume 2 gigawatts of capacity from AWS's custom-designed Trainium AI training chips. Similarly, Nvidia's $30 billion
