OpenAI announced Friday that it is raising $110 billion in a landmark funding round that values the ChatGPT maker at $840 billion, underscoring the surging investor appetite for artificial intelligence, reports Reuters.
The round includes $30 billion from SoftBank, $30 billion from Nvidia and $50 billion from Amazon. The deal comes ahead of OpenAI’s anticipated mega-IPO later this year.
Amazon will initially invest $15 billion, with a further $35 billion to follow once certain conditions are met.
As part of the agreement, OpenAI will use 2 gigawatts of computing capacity powered by Amazon’s in-house Trainium chips. Amazon Web Services (AWS) will become the exclusive third-party cloud provider for OpenAI Frontier, the company’s enterprise platform for building, deploying and managing AI agents.
The partnership, however, does not alter OpenAI’s existing relationship with Microsoft. Microsoft Azure remains the exclusive cloud provider for OpenAI’s APIs, which give developers access to its AI models. OpenAI’s first-party products will continue to run on Azure, and Microsoft retains exclusive licensing rights and intellectual property access across OpenAI models and products.
The funding reflects intensifying competition among Big Tech firms and major investors to secure strategic positions in the rapidly evolving AI sector. OpenAI has been investing heavily in data center infrastructure to meet soaring demand for AI services.
It was not immediately clear whether Nvidia’s $30 billion commitment replaces or supplements an earlier pledge announced in September to invest up to $100 billion in the startup. OpenAI and Nvidia did not immediately respond to requests for clarification.
The deal marks one of the largest private fundraising rounds in technology history and highlights the extraordinary pace of capital flowing into the AI industry.
Bd-pratidin English/ Jisan
