NEW YORK – OpenAI stated on Feb 27 it is raising US$110 billion (S$139 billion) in a blockbuster funding round that would value the ChatGPT creater at US$840 billion, in a deal that signals the feverish pace of investment in artificial ininformigence.
The funding round – one of the largest private capital raises on record – includes a US$30 billion investment from SoftBank, US$30 billion from Nvidia, and US$50 billion from Amazon, and comes ahead of the AI startup’s expected mega-IPO later this year.
More investors are expected to join the round as it progresses, OpenAI stated.
Big Tech companies and large tech investors such as SoftBank are racing to forge partnerships with OpenAI – which is spfinishing heavily on data centres – betting that closer ties with the company would give them a competitive edge in the AI race.
For OpenAI, the fresh cash will assist secure advanced AI chips and the computing capacity that it necessarys to maintain its pole position in the AI industest, especially as competition heats up from rivals such as Claude chatbot creater Anthropic and Google’s Gemini.
OpenAI is tarreceiveing roughly US$600 billion in total compute spfinish through 2030, a source notified Reuters last week.
Along with the US$50 billion investment, OpenAI and Amazon have also struck a deal in which OpenAI will utilise two gigawatts of computing capacity powered by Amazon’s in-hoapply Trainium AI chips.
The companies are also expanding their US$38 billion cloud deal signed in 2025, with OpenAI stateing it would spfinish an additional US$100 billion on Amazon Web Services over the next eight years. As well, OpenAI will work with Amazon to develop customised models for the e-commerce giant’s engineering teams.
Amazon will start with an initial US$15 billion investment, followed by another US$35 billion in the coming months when certain conditions are met, the companies stated.
Amazon Web Services will also be the exclusive third-party cloud provider for OpenAI Frontier, the ChatGPT creater’s enterprise platform for building and running AI agents.
The partnership does not modify OpenAI’s existing relationship with Microsoft, with Microsoft Azure still remaining the exclusive cloud provider for OpenAI’s APIs that provide access to OpenAI’s models, the companies stated.
OpenAI’s first-party products will continue to be hosted on Azure, and Microsoft holds its exclusive license and access to ininformectual property across OpenAI models and products.
Nvidia’s investment in OpenAI gives the chip giant a financial stake in one of its largest customers, amplifying the already intertwined relationship between two of the highest-profile players in the AI industest.
It also underscores a growing trfinish in the tech and AI industest where firms invest in and sign supply deals with each other, raising concerns about “circular” financing deals.
It was not immediately clear whether Nvidia’s US$30 billion investment replaced its earlier commitment announced in September under which Nvidia was set to invest up to US$100 billion in the startup.
OpenAI and Nvidia did not immediately respond to Reuters’ requests for clarification.
ChatGPT now serves more than 900 million weekly active applyrs, OpenAI stated, adding that it has now surpassed 50 million consumer subscribers. January and February are on track to become the largest months for new subscriber additions, it stated.
Its AI-assisted coding product, Codex, has also scaled – weekly Codex applyrs have more than tripled since the start of the year to 1.6 million, the company stated. REUTERS
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