OpenAI secures another $110 billion in funding from Amazon, NVIDIA and SoftBank
OpenAI has just announced a , which is one of the most recent in Silicon Valley history. Investors include many of the usual suspects, including Amazon with $50 billion, NVIDIA with $30 billion, and SoftBank with $30 billion. This investment brings OpenAI to a valuation of $730 billion
“We are very excited about this agreement,” said Sam Altman, CEO of OpenAI. . “AI is going to happen everywhere.” That last statement sounds more like a threat than a boast, but I digress.
Beyond the funding round, OpenAI announced strategic partnerships with NVIDIA and Amazon. This will involve Amazon Web Services (AWS) running OpenAI models for enterprise customers to “build production-scale generative AI applications and agents.” It also names AWS for OpenAI Frontier, which is an agentic enterprise platform.
OpenAI has also committed to consuming 2 gigawatts of Amazon’s Trainium capacity, which is the company’s custom-built AI training accelerator. In other words, Amazon spends a lot of money on OpenAI, and then OpenAI will turn around and spend a lot of money with Amazon. AI.
It’s also worth noting that Amazon’s investment in OpenAI will be phased. Funding starts with $15 billion, but the remaining $35 billion will only be invested when certain conditions are met.
Oddly, it has been reported that one of the conditions is as follows. AGI is when AI evolves to or beyond human-level capabilities, at which point the whole world turns into a rainbow and everyone gets a pony. It could happen later this year, they say, or never. Sam Altman but has .
The new partnership with NVIDIA evolves the . OpenAI has committed to consuming 2 gigawatts of training capacity on NVIDIA’s Vera Rubin systems and an additional 3 gigawatts of computing resources, likely in the form of GPUs, to run specific AI inference tasks. In other words, NVIDIA spends a lot of money on OpenAI, and then OpenAI will turn around and spend a lot of money with NVIDIA. .
As for revenue, OpenAI of $14 billion in 2026. It lost approximately and reports . Despite this trajectory, the company says it will make money.
