Mumbai, February 27: OpenAI has successfully closed a USD 110 billion funding round, the largest private financing in history, more than doubling its previous record set only a year ago. The massive capital injection, led by Amazon, Nvidia, and SoftBank, elevates the artificial intelligence firm to a pre-money valuation of USD 730 billion, according to an official release on Friday.

The investment marks a significant leap from the USD 500 billion valuation the company achieved during secondary financing in October. Amazon contributed the largest share with USD 50 billion, while Nvidia and SoftBank each invested USD 30 billion. OpenAI CEO Sam Altman stated that the funds are essential to meet the global demand for collective computing power as AI continues to transform the economy. OpenAI Frontier Platform Launched To Help Enterprises Deploy and Manage AI Agents As ‘Coworkers’.

Strategic Partnership with Amazon and AWS

Alongside its investment, Amazon announced a multi-year strategic partnership to develop customised models for its customer-facing applications. The deal includes a USD 15 billion initial commitment, with the remaining USD 35 billion to be deployed in the coming months upon meeting specific conditions.

OpenAI is also expanding its existing agreement with Amazon Web Services by USD 100 billion over the next eight years. Under this arrangement, AWS will serve as the exclusive third-party cloud provider for Frontier, OpenAI’s recently unveiled enterprise platform. Despite the new ties with Amazon, OpenAI and Microsoft issued a joint statement confirming their long-standing partnership remains central to their operations.

Infrastructure Demands and Market Competition

To support its technical ambitions, OpenAI is deepening its collaboration with Nvidia to access vast amounts of processing power. The company plans to utilise five gigawatts of capacity on Nvidia’s Vera Rubin systems for both training and inference. This infrastructure is critical as OpenAI now targets approximately USD 600 billion in total compute spend by 2030. OpenAI Partners With IIT Delhi, IIM Ahmedabad and Other Top Indian Institutes To Build AI-Ready Talent Pipeline.

While OpenAI maintains its lead in the consumer market with ChatGPT, it faces increasing pressure from Google’s Gemini and rival Anthropic in the enterprise sector. Internal projections suggest the company is aiming for total revenue of more than USD 280 billion by 2030, split almost equally between its consumer and business divisions.

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