OpenAI Closes Record $110B Funding Round
OpenAI has closed a massive $110 billion funding round led by Amazon, Nvidia, and SoftBank, pushing its valuation to $730 billion. The deal includes a major strategic partnership with Amazon, making AWS the exclusive third-party cloud distributor for OpenAI's next-gen "Frontier" models. The capital is earmarked for scaling fundamental AI research and deployment.
This funding round is the largest in private tech history, more than doubling OpenAI's previous record-setting $40 billion raise in March 2025. The new capital catapults OpenAI's post-money valuation to roughly $840 billion, a significant jump from its $500 billion valuation just four months prior. The investment breakdown is $50 billion from Amazon, $30 billion from Nvidia, and $30 billion from SoftBank. For Amazon, this represents the single largest investment it has ever made in another company. SoftBank's contribution brings its total investment in OpenAI to $64.6 billion, giving it an approximate 13% stake. A cornerstone of the deal is an expanded eight-year, $100 billion partnership with Amazon Web Services. This makes AWS the exclusive third-party cloud provider for OpenAI's "Frontier" enterprise platform, which is designed for companies to build and manage teams of AI agents. OpenAI's Frontier platform, which launched in February 2026, uses the GPT-5.x family of models. The deal also deepens OpenAI's ties with Nvidia, securing access to its next-generation "Vera Rubin" GPU architecture to expand the necessary computing capacity for building and deploying advanced AI. In addition to the equity investment, OpenAI will utilize 2 gigawatts of computing capacity powered by Amazon's own in-house Trainium AI chips, diversifying its hardware infrastructure. This massive influx of capital comes as competition intensifies, with rivals like Google's Gemini and Anthropic's Claude models gaining ground in both consumer and business sectors. OpenAI, which reportedly reached over $20 billion in annual recurring revenue in 2025, now serves 900 million weekly active users, including over 50 million consumer subscribers and 9 million paying businesses.