OpenAI Closes Record $110B Funding Round
OpenAI has completed a historic $110 billion funding round, pushing its valuation to an estimated $730 billion. The round was led by Amazon, Nvidia, and SoftBank. The company also announced a strategic partnership making AWS the exclusive cloud distributor for its 'Frontier' models and a new deal to supply AI systems to the Pentagon.
This funding round stands as the largest private financing in history, with Amazon committing $50 billion, and Nvidia and SoftBank each contributing $30 billion. The new capital is earmarked to expand the massive computing infrastructure required to meet the surging demand for OpenAI's products. OpenAI's valuation has seen a dramatic surge, jumping from $500 billion in late 2025 to the current $730 billion pre-money valuation. This new valuation boosts the OpenAI Foundation's stake in the company to over $180 billion. The company's user base has also grown significantly, with over 900 million weekly active users and more than 50 million paying consumer subscribers. The partnership with Nvidia provides OpenAI with access to 3 gigawatts of dedicated inference capacity and 2 gigawatts for training on Nvidia's next-generation "Vera Rubin" systems. This builds on existing infrastructure that already utilizes Hopper and Blackwell hardware through partnerships with Microsoft, Oracle Cloud, and CoreWeave. As part of the expanded eight-year deal with Amazon, OpenAI will spend an additional $100 billion on Amazon Web Services. This collaboration will also see the joint development of a "Stateful Runtime Environment" available through Amazon Bedrock, which will allow AI agents to retain context and manage ongoing projects. The Pentagon agreement, valued at $200 million, tasks OpenAI with developing "frontier AI" for both combat and administrative purposes. The work will be carried out by OpenAI's Public Sector subsidiary and is slated for completion by July 2026. This deal with the Department of Defense allows for the deployment of OpenAI's models on classified networks for all lawful purposes. OpenAI has stated that key safety principles, including the prohibition of domestic mass surveillance and ensuring human accountability for the use of force, are incorporated into the agreement.