OpenAI said on Friday it is raising $110 billion in a blockbuster funding round, valuing the ChatGPT maker at $840 billion, in one of the largest private financings ever completed. The deal underscores the feverish pace of investment in artificial intelligence, as Big Tech and global investors race to secure a stake in the future of AI infrastructure.
The funding round—still open to additional investors—is more than double what OpenAI raised last year, when it secured $40 billion in what was then the largest private technology deal on record.
Amazon, Nvidia, SoftBank Anchor the Record Raise
The latest round includes major commitments from some of the world’s most powerful technology and investment firms:
- Amazon – $50 billion
- Nvidia – $30 billion
- SoftBank Group – $30 billion
OpenAI said Amazon’s investment will begin with an initial $15 billion, followed by another $35 billion in coming months, subject to certain conditions. More investors are expected to join the round ahead of OpenAI’s widely anticipated mega-IPO, which could take place later this year.
“We’re super excited about this deal,” OpenAI CEO Sam Altman told CNBC. “AI is going to happen everywhere. It’s transforming the whole economy, and the world needs a lot of collective computing power to meet the demand.”
AI Spending Accelerates Despite Rising Concerns
The announcement comes as tech executives increasingly tell investors they are doubling down on AI spending, even as concerns grow around the cost of the AI boom.
AI expansion depends heavily on massive data centers, which have drawn scrutiny from lawmakers and local communities for their impact on energy prices, water usage, and infrastructure strain. At the same time, there are growing fears that automation could displace large numbers of workers.
On Thursday, fintech company Block announced it would lay off 4,000 employees, citing productivity gains from AI. Separately, Goldman Sachs estimated earlier this year that AI contributed to 5,000 to 10,000 net job losses per month in 2025.
Amazon Cloud Deal Strengthens OpenAI’s Infrastructure Push
Alongside the funding, OpenAI and Amazon have struck a deep infrastructure partnership. OpenAI will utilize two gigawatts of computing capacity powered by Amazon’s in-house Trainium AI chips, a move the company says will lower costs and improve efficiency at scale.
Amazon’s cloud unit, Amazon Web Services (AWS), will also become the exclusive third-party cloud provider for OpenAI Frontier, the company’s enterprise platform for building and managing AI agents.
“This agreement lowers the cost and improves the efficiency of producing intelligence at scale,” OpenAI said in a statement.
Microsoft Partnership Remains Unchanged
Despite Amazon’s expanded role, OpenAI emphasized that its long-standing relationship with Microsoft remains intact.
Microsoft Azure will continue to:
- Host OpenAI’s first-party products
- Serve as the exclusive cloud provider for OpenAI’s APIs
- Hold exclusive licensing and intellectual property access across OpenAI models
The arrangement signals a multi-cloud strategy, rather than a shift away from Microsoft.
ChatGPT Usage Nears One Billion Weekly Users
OpenAI also shared new usage metrics highlighting its rapid growth. ChatGPT now serves more than 900 million weekly active users and over 50 million paid subscribers worldwide.
The company pointed to strong adoption of tools such as Codex, its AI software engineering agent available to paid users. Weekly Codex users have tripled since the start of the year, reaching 1.6 million, with OpenAI describing the tool’s output as comparable to that of a “top engineer.”
Nvidia’s Role and the Road Ahead
It remains unclear whether Nvidia’s $30 billion investment replaces an earlier commitment announced in September, under which the chipmaker had considered investing up to $100 billion. Still, Nvidia CEO Jensen Huang has reaffirmed the company’s commitment to OpenAI, calling reports of tension between the two firms unfounded.
OpenAI said the expanded funding and partnerships will strengthen its ability to train and deploy frontier AI models at global scale, as competition intensifies among AI labs, cloud providers, and chipmakers.
Bottom Line
OpenAI’s $110 billion funding round is more than a record-setting raise—it reflects how artificial intelligence is reshaping global investment priorities, corporate strategy, and economic expectations. As AI moves from research into everyday use at massive scale, the race is no longer just about smarter models, but about who can build, power, and sustain the infrastructure behind them.
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