OpenAI Secures $110 Billion Funding Round at $840 Billion Valuation Ahead of IPO

OpenAI has raised a record-breaking $110 billion in fresh funding, pushing the ChatGPT maker’s valuation to an impressive $840 billion. The massive investment round, backed by SoftBank, Nvidia, and Amazon, highlights the ongoing AI investment boom despite concerns about a potential tech valuation bubble. The capital injection comes as OpenAI prepares for a highly anticipated IPO and ramps up spending on AI chips, research and development, and cloud infrastructure.

SoftBank is leading the round with a $30 billion commitment, bringing its total investment in OpenAI to $64.6 billion for an estimated 13% ownership stake. The funding will be delivered in phases, starting with a $10 billion tranche expected to close by April 1. SoftBank will receive preferred shares that convert to common shares upon OpenAI’s IPO. To finance the deal, the Japanese conglomerate is using bridge loans, capital raises, and proceeds from asset sales, including Nvidia shares.

Nvidia is also investing $30 billion, deepening its strategic partnership with OpenAI. The AI chipmaker will supply its latest Rubin systems, providing five gigawatts of computing capacity—enough to power millions of U.S. homes. Meanwhile, Amazon is committing $50 billion and expanding its cloud partnership with OpenAI. The companies will scale their existing $38 billion agreement, with OpenAI planning to spend an additional $100 billion on Amazon Web Services over eight years. AWS will become the exclusive third-party cloud provider for OpenAI Frontier, its enterprise AI platform, while Microsoft Azure remains the exclusive cloud provider for OpenAI’s APIs and first-party products.

OpenAI, which now serves over 900 million weekly active ChatGPT users and more than 50 million subscribers, is targeting $600 billion in total compute spending through 2030 as competition intensifies with Google Gemini and Anthropic in the rapidly evolving artificial intelligence market.