OpenAI Raises $110 Billion From Amazon, Nvidia, and SoftBank at a $730 Billion Valuation

OpenAI announced Friday that it has raised $110 billion in private funding, the largest such round in history, at a pre-money valuation of $730 billion — a 46% increase from the $500 billion valuation the company carried in its October secondary transaction. Amazon led the round with a $50 billion commitment, followed by $30 billion each from Nvidia and SoftBank.

The round remains open, with OpenAI indicating additional investors are expected to join as fundraising continues.

The deal is structured as a combination of cash and services. Amazon's $50 billion commitment will begin with an initial tranche, with an additional $35 billion to arrive in coming months contingent on OpenAI meeting certain conditions — which a source familiar with the matter indicated may include either achieving artificial general intelligence or completing an initial public offering by year-end.

Amazon Web Services will serve as the exclusive third-party cloud distribution partner for OpenAI's Frontier enterprise platform, and OpenAI has committed to consuming at least two gigawatts of AWS Trainium compute. OpenAI also agreed to expand its existing AWS contract by $100 billion over the next eight years and to develop custom models for Amazon consumer products.

The Nvidia dimension of the deal also runs deep. OpenAI committed to consuming three gigawatts of dedicated inference capacity and two gigawatts of training capacity on Nvidia's forthcoming Vera Rubin systems.

CEO Sam Altman framed the fundraise as a turning point: "We are entering a phase where AI moves from research into daily use at global scale." The company noted it has surpassed 900 million weekly active users and more than 50 million paying subscribers, though it remains unprofitable with expected expenditures of $115 billion over the next four years.

The announcement dwarfs OpenAI's previous record round, which raised $40 billion against a $300 billion valuation in March 2025. Amazon CEO Andy Jassy described the investment rationale directly: "We believe they'll be one of the major winners in AI.

We can assist them in their growth and are confident that we'll achieve a substantial return for Amazon in the long run." Microsoft, which holds a longstanding partnership with OpenAI, was reported to still have the option to participate in the round; OpenAI stated its collaboration with Microsoft remains "strong and central."

Read the original reporting at The New York Times.