OpenAI has secured $110 billion in new funding, led by Amazon, Nvidia and SoftBank, valuing the company at $730 billion. Amazon will invest $50 billion and expand its cloud partnership through AWS. The funding supports AI infrastructure growth.
OpenAI has announced a huge new funding round worth $110 billion, more than double the size of its previous record raise last year. The company said the investment will help expand advanced artificial intelligence systems and global infrastructure.
The deal places OpenAI at a pre-money valuation of $730 billion. This is a sharp rise from the $500 billion valuation reported during a secondary financing round in October, as reported by CNBC.
Major investments from global tech giants
The funding round is led by three major technology investors. Amazon is investing $50 billion, while Nvidia and SoftBank are each investing $30 billion. OpenAI said more investors may join as the financing progresses.
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Amazon’s investment will begin with an initial commitment of $15 billion. The remaining $35 billion will follow after certain agreed conditions are met in the coming months.
OpenAI said these partnerships will expand its global reach, strengthen its financial position, and support development of advanced AI systems for businesses and communities worldwide.
Strategic partnership with Amazon
Alongside the investment, OpenAI and Amazon have announced a multi-year strategic partnership. The companies will work together to develop customised AI models for Amazon’s customer-facing services.
OpenAI is also expanding its existing agreement with Amazon Web Services by an additional $100 billion over the next eight years. Under the deal, AWS will serve as the exclusive third-party cloud distribution provider for OpenAI’s enterprise platform, Frontier.
Amazon CEO Andy Jassy said the company sees long-term potential in artificial intelligence and believes OpenAI will remain one of the leading players in the field.
AI growth and infrastructure spending
Since launching ChatGPT more than three years ago, OpenAI has played a major role in shaping the global artificial intelligence industry. However, building advanced AI systems requires enormous computing power and infrastructure investment.
OpenAI is now targeting roughly $600 billion in total computing spending by 2030. This figure provides a more defined timeline compared with earlier infrastructure commitments discussed publicly by CEO Sam Altman.
The company has told investors that significant funding is needed to support graphics processing units, data centres, and other technical systems required for next-generation AI models.
Balancing expansion with long-term returns
Sources familiar with the company’s planning say OpenAI has refined its spending projections after concerns that earlier expansion plans may have been too ambitious compared with expected revenue growth.
By securing large-scale investment and strengthening partnerships with major technology firms, OpenAI aims to balance rapid expansion with sustainable development in the fast-growing AI sector.
The new funding round marks one of the largest private technology investments in history and signals intensifying global competition in artificial intelligence development.
