New Details on OpenAI's Record $110B Raise
New details have emerged on OpenAI's historic $110 billion funding round, the largest in tech history. Amazon has committed up to $50 billion as part of the deal, with Nvidia and SoftBank also providing significant backing, valuing the AI leader at over $730 billion.
The post-money valuation of OpenAI now stands at approximately $840 billion, a dramatic increase from its $500 billion valuation in October 2025 and $300 billion in March 2025. This meteoric rise makes it one of the world's most valuable private companies. This funding round is structured as a series of strategic partnerships, not just a cash infusion. Amazon's $50 billion commitment, its largest ever in another company, will be delivered in two parts: an initial $15 billion, followed by $35 billion once certain conditions are met. The deal is deeply tied to computing infrastructure. OpenAI has expanded its existing cloud agreement with Amazon Web Services by $100 billion over eight years and will use 2 gigawatts of Amazon's own Trainium AI chips. Similarly, Nvidia's $30 billion investment is linked to OpenAI's commitment to use 5 gigawatts of its next-generation "Vera Rubin" computing systems. This massive need for capital is driven by intense demand, with ChatGPT reportedly reaching 900 million weekly active users. The user base includes over 50 million paying consumer subscribers and 9 million paying business customers. The company's revenue reached an estimated annualized $20 billion in 2025, but its expenses are also astronomical. Projections suggest OpenAI could burn through more than $200 billion by 2029 and does not expect to reach profitability until at least 2029 or 2030. Despite Amazon's significant new role as an investor and cloud partner, OpenAI's foundational relationship with Microsoft remains unchanged. Microsoft Azure continues to be the exclusive cloud provider for OpenAI's APIs, and Microsoft retains its exclusive license to OpenAI's intellectual property.
