OpenAI Secures $110 Billion Funding with Amazon, Nvidia, and SoftBank

Feb 28, 2026, 2:21 AM

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OpenAI has announced a monumental funding round of $110 billion, marking the largest raise in the company's history. This financing is more than double its last funding round a year ago, which previously set a record for private tech companies.

The funding comes from three major players in the tech industry: Amazon, which invested $50 billion; Nvidia, contributing $30 billion; and SoftBank, also investing $30 billion. With this new infusion, OpenAI's pre-money valuation has soared to $730 billion, up from $500 billion in October.

OpenAI's CEO, Sam Altman, expressed enthusiasm about the new capital, stating, "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." He emphasized the importance of scaling infrastructure to meet the growing needs of AI applications.

In a strategic move alongside the investment, Amazon has entered into a multiyear partnership with OpenAI. This collaboration aims to develop customized AI models that will enhance Amazon's customer-facing applications. The agreement also expands OpenAI's existing $38 billion deal with Amazon Web Services (AWS) to $100 billion over the next eight years, establishing AWS as the exclusive third-party cloud provider for OpenAI's enterprise platform, Frontier.

Notably, Amazon's investment will be executed in stages, beginning with an initial commitment of $15 billion, followed by an additional $35 billion contingent on meeting specific performance milestones.

Nvidia's involvement will focus on providing "next generation inference compute," enabling OpenAI to enhance its AI capabilities. OpenAI has committed to purchasing 3 gigawatts of chips from Nvidia, further solidifying their collaborative relationship.

Despite the influx of investment, OpenAI has reassured its stakeholders that this funding round does not alter its partnership with Microsoft, which has been a significant backer since 2019. Both companies reaffirmed that their collaboration remains "strong and central." Microsoft is also reportedly exploring options to participate in this latest funding round.

This funding round comes at a critical time for OpenAI, as the demand for AI solutions continues to surge. The company stated, "We are entering a new phase where frontier AI moves from research into daily use at global scale." It underscored the competitive landscape, indicating that leadership will depend on who can effectively scale infrastructure to meet this pressing demand.

The announcement of this funding has ignited discussions about OpenAI's future and its potential to lead in the rapidly evolving AI landscape. Altman has hinted at the possibility of an initial public offering (IPO), acknowledging the advantages of both private and public funding.

In conclusion, OpenAI's $110 billion funding round underscores its pivotal role in shaping the future of AI technology. With significant backing from industry giants like Amazon, Nvidia, and SoftBank, OpenAI is poised to further expand its capabilities and influence in the tech sector.

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