Jakarta, INTI - OpenAI has secured $110 billion in fresh funding in a transaction that places the company’s valuation at $730 billion, marking the largest capital raise in the maker of ChatGPT’s history and strengthening its capital-intensive efforts to expand computing capacity and recruit top AI talent.
Amazon is contributing $50 billion in cash to the round, the biggest single investment the e-commerce leader has ever made in another company. Amazon will provide an initial $15 billion, with the remaining $35 billion to follow once specific milestones are achieved, OpenAI announced Friday.
Amazon’s additional commitment depends on OpenAI proceeding with an initial public offering or announcing that it has achieved artificial general intelligence, a more advanced form of AI, according to a person familiar with the discussions. In a regulatory filing released Friday, Amazon stated it would be obligated to invest the remaining funds if and when OpenAI becomes publicly listed.
SoftBank Group and Nvidia have each invested $30 billion, OpenAI confirmed. The newly assigned $730 billion valuation excludes the capital raised in the round; on a post-money basis, the company’s valuation now stands at $840 billion.
The agreement, which has been under negotiation for several months, comes amid increasing scrutiny over whether AI firms and major technology companies are overspending on data centers and AI chips without guaranteed returns. OpenAI alone has previously disclosed plans to allocate more than $1.4 trillion toward AI infrastructure. To support these large-scale investments, OpenAI and competitor Anthropic have increasingly relied on a similar pool of venture capital investors and technology partners.
OpenAI is also expected to secure approximately $10 billion more from venture capital firms and sovereign wealth funds as the funding round continues, according to a source familiar with the matter who requested anonymity due to the private nature of the discussions. The company aims to finalize the round by the end of March, the source added.
The sizable investment from Amazon, a longstanding supporter of Anthropic, further strengthens its ties with OpenAI. Under the agreement, OpenAI will adopt Amazon’s proprietary AI chips, known as Trainium, and collaborate on developing tailored models for Amazon’s internal engineering teams.
OpenAI has also committed to spending an additional $100 billion on Amazon Web Services (AWS) over the next eight years. In November, the two companies disclosed a prior agreement in which OpenAI would utilize approximately $38 billion worth of AWS services over seven years.
“Amazon can deliver so much to us in terms of new demand and opportunities in the market,” OpenAI Chief Executive Officer Sam Altman said in an interview with CNBC on Friday. Andy Jassy, Amazon’s CEO, said the deal “will yield a good return for Amazon over a long period of time.”
OpenAI also intends to deploy 5 gigawatts of Nvidia’s Vera Rubin systems to train and operate its AI models, the chipmaker stated.
Microsoft, previously one of OpenAI’s largest investors and its former exclusive infrastructure partner, emphasized that its collaboration with the AI developer remains intact. “Nothing about today’s announcements in any way changes the terms of the Microsoft and OpenAI relationship,” the companies said in a joint statement Friday.
Earlier this month, Anthropic secured $30 billion in funding from investors including Nvidia and Microsoft, bringing its valuation to $380 billion inclusive of the new capital.
These funding commitments highlight a growing trend of circular financing arrangements, where chip manufacturers and cloud providers invest in leading AI startups that also rely on their hardware and services. While such partnerships are designed to support the sector’s vast infrastructure requirements, they also carry the risk of amplifying financial losses if AI demand does not meet current high expectations.
Nvidia Is at Center of Circular AI Deals
In the CNBC interview, Altman sought to ease concerns surrounding these interconnected investments.
“I get where the concern comes from,” Altman said. “This only makes sense if new revenue flows into the whole AI ecosystem.” He noted that much of his focus is on expanding computing capacity to meet growing demand for ChatGPT and OpenAI’s other offerings.
Conclusion
The massive funding round underscores OpenAI’s aggressive expansion strategy as it deepens partnerships with Amazon, Nvidia, and other major tech players. While these circular financing arrangements are designed to secure critical AI infrastructure and accelerate innovation, they also heighten financial risks if market demand fails to keep pace. Ultimately, the deal signals both the extraordinary scale of AI ambition and the growing interdependence between chipmakers, cloud providers, and leading AI developers.
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