OpenAI is one of the biggest AI companies to exist at this point, with rivals like Google, Anthropic, Meta, and others competing alongside it. However, OpenAI now has what it takes to scale its AI footprint and push even further toward excelling in the race for AI models.
Here, we are talking about investment, and that too a massive one. As reported earlier this month, Sam Altman-led OpenAI today announced that it has closed one of the biggest private funding rounds in tech history, securing $110 billion in new investment at a pre-money valuation of approximately $730 billion.
The historic funding & strategic partnerships power OpenAI’s next phase in AI race
The latest funding round is led by three major companies, including Amazon ($50 billion), NVIDIA ($30 billion), and SoftBank Group ($30 billion). Amazon’s investment, including an initial $15 billion with another $35 billion to follow under certain conditions, comes alongside a multi-year strategic partnership that will see AWS become the exclusive third-party cloud provider for OpenAI’s enterprise platform, Frontier.
The new capital is expected to support massive scaling efforts to expand compute capacity, infrastructure, and the global distribution of advanced AI services and consumer-facing products like ChatGPT, enterprise AI agents, and more. OpenAI is also planning to deploy Trainium compute at gigawatt scale through AWS to meet demand.
OpenAI says that the investment comes amid soaring demand for AI across consumers, developers, and businesses. Its products have seen explosive adoption over the years. ChatGPT reportedly has more than 900 million weekly active users and over 50 million consumer subscribers, while millions of paying business users rely on the platform for creative and professional workloads. While the tech world watches this mega-round, OpenAI has maintained that existing partnerships, including its long-standing collaboration with Microsoft, remain intact and unchanged.
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The scale of this investment also boosts the OpenAI Foundation’s stake in the company, which will expand its ability to fund philanthropic work in areas like health breakthroughs and AI safety research.
