OpenAI Closes Record $110B Funding Round

OpenAI has closed a historic $110 billion funding round, the largest in private tech history, rocketing its valuation to an estimated $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.

The $110 billion total is comprised of a $50 billion investment from Amazon, $30 billion from Nvidia, and another $30 billion from SoftBank. Amazon's contribution will start with an initial payment of $15 billion, with an additional $35 billion to follow in the coming months as specific conditions are met. This new funding round dramatically increases OpenAI's pre-money valuation to $730 billion, a significant leap from its $500 billion valuation during a secondary offering in October. Including the new capital, the company's post-money valuation now stands at $840 billion. The deal with Amazon significantly expands an existing partnership, adding $100 billion over the next eight years to a previous $38 billion cloud agreement. As part of the arrangement, OpenAI will utilize 2 gigawatts of computing capacity from Amazon's own in-house Trainium AI chips. Beyond its financial stake, Nvidia will provide OpenAI with access to its next-generation "Vera Rubin" GPU architecture. The agreement dedicates 3 gigawatts of inference capacity and 2 gigawatts of training capacity on these advanced systems to OpenAI. The "Frontier" platform is OpenAI's enterprise-grade system designed for companies to build and manage teams of AI agents. These agents can operate across real business systems like Salesforce or Oracle, with shared context and built-in security, moving beyond single-task chatbots to handle complex, multi-step workflows. The investment aims to support surging user demand, with OpenAI reporting over 900 million weekly active users for ChatGPT. The service has also grown to 50 million consumer subscribers and more than 9 million paying business customers. This funding round shatters previous records for a private company, including OpenAI's own prior record of $40 billion raised in March 2025. The new valuation also boosts the value of the non-profit OpenAI Foundation's stake in the company to over $180 billion.

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