OpenAI Closes Record $110B Funding Round
OpenAI just completed a massive $110 billion private funding round, the largest ever for an AI company. The round, led by Amazon and Nvidia, boosts OpenAI's valuation to an estimated $730 billion. As part of the deal, the company announced a strategic partnership making AWS the exclusive third-party cloud provider for its advanced "Frontier" models.
This funding round is the largest private financing in history, more than doubling the $40 billion OpenAI raised in 2025 which was then a record. The new capital brings OpenAI's post-money valuation to an estimated $840 billion. Amazon's $50 billion investment is structured with an initial $15 billion, followed by an additional $35 billion contingent on meeting certain undisclosed conditions. This deal expands upon a previous $38 billion multi-year agreement, committing OpenAI to an additional $100 billion in spending on AWS infrastructure over the next eight years. As part of the deal, OpenAI will utilize 2 gigawatts of power from Amazon's custom Trainium AI accelerators. This is a significant endorsement of Amazon's in-house chip development as it competes with other providers for major AI workloads. Nvidia's $30 billion investment is also tied to infrastructure, securing a massive build-out for OpenAI. The company will deploy 3 gigawatts of inference capacity and 2 gigawatts for training on Nvidia's next-generation "Vera Rubin" systems. The partnership designates AWS as the exclusive third-party cloud provider for "OpenAI Frontier," an enterprise platform for building and managing teams of AI agents. This platform enables businesses to deploy AI agents that can operate across their internal systems with shared context and governance. Despite the new AWS exclusivity for Frontier, OpenAI has stated the deal does not alter its existing relationship with Microsoft. Microsoft Azure remains the exclusive cloud provider for OpenAI's first-party products and its stateless APIs.
