OpenAI Closes Record $110B Funding Round
OpenAI has closed a staggering $110 billion funding round, the largest private capital raise in tech history, valuing the company at $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 most advanced "Frontier" models, which will be offered on the Amazon Bedrock platform for enterprise customers.
This funding round catapults OpenAI's post-money valuation to roughly $840 billion. This is a significant leap from its $500 billion valuation just four months ago and its $300 billion valuation less than a year ago in March 2025. Amazon's $50 billion commitment is the largest single investment the company has ever made in another firm. The investment will be delivered in two parts: an initial $15 billion, followed by an additional $35 billion once certain conditions are met. Nvidia and SoftBank are each contributing $30 billion to the round. The expanded Amazon partnership will see the two companies co-create a "Stateful Runtime Environment" on AWS Bedrock. This will allow AI agents to maintain context and memory across sessions. As part of the deal, OpenAI will also utilize 2 gigawatts of computing capacity from Amazon's own Trainium AI chips. Nvidia's investment secures OpenAI's access to its next-generation "Vera Rubin" GPU architecture. OpenAI is slated to use 5 gigawatts of dedicated computing capacity on these future Nvidia systems, enough energy to power millions of homes. The "Frontier" platform mentioned in the deal is an enterprise-grade system for building and managing teams of AI agents. It provides a shared business context, governance, and security for agents to operate across a company's internal systems, with early adopters including companies like Intuit, Oracle, and State Farm. The capital is needed to meet massive user demand, with OpenAI reporting over 900 million weekly active users for its products. This figure includes more than 50 million paying consumer subscribers and 9 million paying business customers. This funding addresses OpenAI's enormous infrastructure costs, with the company projecting it will spend around $600 billion on computing power by 2030. The capital helps secure large-scale compute contracts with Microsoft and Oracle, and the company does not project profitability until at least 2029. While not a lead investor in this round, long-term partner Microsoft's relationship with OpenAI remains unchanged. Following this new valuation, the estimated worth of Microsoft's stake in the AI leader is now approximately $200 billion.
