OpenAI Secures Historic $110B Investment from Tech Giants Amazon, Nvidia, and SoftBank

Key Highlights

• OpenAI successfully completed a historic $110 billion private financing round
• Major investments include: Amazon ($50B), Nvidia ($30B), and SoftBank ($30B)
• Company valuation surged to $730–$840 billion on a pre-money basis
• Amazon Web Services secured exclusive third-party cloud partnership for OpenAI’s Frontier enterprise platform
• Company forecasts annual revenue exceeding $280 billion by decade’s end

In a groundbreaking development, OpenAI has successfully completed a $110 billion financing round, marking the largest private capital raise in corporate history. This massive injection represents more than double the amount raised in its previous funding effort just twelve months earlier.

Amazon has pledged a total of $50 billion to this financing round. The tech giant’s contribution will be structured with an initial $15 billion payment, while the remaining $35 billion is contingent upon meeting specific performance milestones.

Nvidia has committed $30 billion to the investment. Meanwhile, SoftBank matched that figure with its own $30 billion stake. According to OpenAI, additional investors are anticipated to participate as the funding round continues.

The capital infusion establishes OpenAI’s pre-money valuation in the range of $730 billion to $840 billion. This represents a substantial increase from the $500 billion valuation assigned during a secondary transaction last October.

Sam Altman, OpenAI’s Chief Executive Officer, discussed the landmark deal during an appearance on CNBC’s Squawk Box Friday morning. He expressed enthusiasm about the partnership and emphasized how artificial intelligence is reshaping the global economic landscape.

Andy Jassy, Amazon’s CEO, joined the same broadcast to share his perspective. He praised OpenAI’s promising trajectory and stated that Amazon views them as a future powerhouse in the artificial intelligence sector.

Amazon Web Services Gains Exclusive Frontier Cloud Partnership

Under the terms of this agreement, Amazon Web Services has been designated as the sole third-party cloud distribution partner for OpenAI Frontier. This enterprise-focused platform enables organizations to develop and deploy AI agents at scale.

The arrangement also includes an expansion of OpenAI’s current $38 billion AWS contract, adding another $100 billion spread across the coming eight years. Additionally, OpenAI plans to leverage two gigawatts of computing power utilizing Amazon’s proprietary Trainium chip technology.

This new strategic alliance with Amazon does not impact OpenAI’s longstanding relationship with Microsoft. Microsoft Azure continues as the exclusive cloud infrastructure provider for OpenAI’s application programming interfaces, while Microsoft maintains its exclusive licensing rights to OpenAI’s proprietary technology.

In a collaborative statement with Microsoft, OpenAI emphasized that their strategic partnership continues to be “strong and central” to both organizations.

Infrastructure Investment Strategy and Market Dynamics

OpenAI has set a target of approximately $600 billion in aggregate computing infrastructure expenditure through 2030. This figure represents a reduction from the $1.4 trillion infrastructure commitment CEO Sam Altman had previously discussed in public forums.

According to sources speaking with CNBC, the company adjusted these projections downward amid concerns that aggressive expansion targets were outpacing reasonable revenue expectations.

The company is also deepening its collaboration with Nvidia. OpenAI will deploy three gigawatts of dedicated inference computing capacity alongside two gigawatts of training capacity utilizing Nvidia’s Vera Rubin infrastructure systems.

OpenAI’s revenue projections anticipate surpassing $280 billion annually by 2030. The company expects its consumer-facing products and enterprise solutions to contribute roughly equal portions to this total.

The organization confronts intensifying competition from Google’s Gemini platform in consumer markets. Within the enterprise artificial intelligence segment, competitor Anthropic, which recently secured $30 billion in funding, currently maintains a competitive advantage.

OpenAI’s public offering is anticipated to occur within the current calendar year. This $110 billion funding round eclipses the previous record—also established by OpenAI—with a $40 billion raise spearheaded by SoftBank in the prior year.

The post OpenAI Secures Historic $110B Investment from Tech Giants Amazon, Nvidia, and SoftBank appeared first on Blockonomi.