WORLD NEWS
OpenAI announced on Friday a blockbuster $110 billion funding round, valuing the ChatGPT maker at $840 billion. The round includes $30 billion from SoftBank, $30 billion from Nvidia, and $50 billion from Amazon. The funding comes ahead of OpenAI’s anticipated mega-IPO later this year.
The strategic investments highlight the intense competition among Big Tech companies and investors to forge closer ties with the AI leader. OpenAI is spending heavily on data centers, and partners are betting that collaboration will provide a competitive edge in the AI race.
As part of the deal, Amazon will initially invest $15 billion, followed by an additional $35 billion when certain conditions are met. OpenAI will also gain access to 2 gigawatts of computing power using Amazon’s in-house Trainium chips. Additionally, Amazon Web Services (AWS) will become the exclusive third-party cloud provider for OpenAI Frontier, the company’s enterprise platform for managing and deploying AI agents.
Microsoft’s role with OpenAI remains unchanged. Azure will continue as the exclusive cloud provider for OpenAI APIs, and Microsoft retains its license and intellectual property access across OpenAI models and products.
It is unclear whether Nvidia’s $30 billion commitment replaces an earlier $100 billion investment plan announced in September. OpenAI and Nvidia have not provided clarification on this point.
This funding round underscores the feverish pace of AI investment as major tech players race to secure partnerships with one of the world’s most influential AI developers.