Amazon and Nvidia back OpenAI in $110 billion funding deal

OpenAI announced Friday morning that it has raised $110 billion in a private funding round, valuing the company at a $730 billion pre-money valuation. The round remains open, and OpenAI expects more investors to join. The transaction represents a significant increase from the company’s previous funding round in March 2025, which raised $40 billion against a $300 billion valuation.

The current funding round includes the following commitments:

• Amazon: $50 billion
• Nvidia: $30 billion
• SoftBank: $30 billion

A significant portion of the investment likely comes in the form of services rather than cash. As part of the transaction, OpenAI plans to expand its partnership with AWS (Amazon Web Services), the cloud platform, by $100 billion, building on a previous AWS compute commitment of $38 billion. OpenAI plans to develop a stateful runtime environment—a computing environment that maintains state between interactions—where OpenAI models will run on Bedrock, Amazon’s platform for building generative AI applications. The company has committed to consuming at least 2GW of AWS Trainium, Amazon’s custom machine learning chips, and plans to build models to support Amazon consumer products. Amazon CEO Andy Jassy stated that the collaboration to provide stateful runtime environments will change what is possible for customers building AI applications and agents.

The structure of the funding includes specific conditions. The Information reported that $35 billion of Amazon’s investment could be contingent on OpenAI achieving AGI (Artificial General Intelligence) or making its IPO by the end of the year. OpenAI’s announcement confirmed the funding split but noted that the additional $35 billion will arrive in the coming months when certain conditions are met.

For its Nvidia partnership, OpenAI has committed to using 3GW of dedicated inference capacity and 2GW of training capacity on Vera Rubin systems, Nvidia’s system architecture. In January, Nvidia CEO Jensen Huang dismissed the idea that Nvidia was backing away from OpenAI, stating that the company would invest a great deal of money because he believes in OpenAI’s work.

OpenAI framed the massive capital injection as a step toward widespread deployment. “We are entering a new phase where frontier AI moves from research into daily use at global scale,” the company stated.

Why it matters

OpenAI’s $110 billion raise highlights the massive capital requirements for frontier AI, shifting the focus from pure cash to deep infrastructure integration with cloud and hardware giants.