In a move that reflects the frantic pace of artificial intelligence investment, OpenAI said on Friday that it is raising $110 billion in a blockbuster funding round, which would value the ChatGPT creator at $840 billion.

OpenAI Raises $110 Billion, Valuation Soars To $840 Billion With Support From Amazon, Nvidia And SoftBank; Sam Altman Calls It a ‘Grateful Moment’

The capital round, which comes ahead of the AI startup’s anticipated mega-IPO later this year, comprises $30 billion from SoftBank, $30 billion from Nvidia, and $50 billion from Amazon. Large tech firms and investors, including SoftBank, are vying for alliances with OpenAI, which is substantially investing in data centers, in the hopes of gaining a competitive advantage in the AI race.

When certain requirements are fulfilled, Amazon will invest an additional $35 billion in the upcoming months after its original $15 billion commitment. In addition to the investment, OpenAI and Amazon have reached an agreement wherein OpenAI would make use of two gigawatts of processing power generated by Amazon’s own Trainium chips, according to the businesses. The ChatGPT manufacturer’s corporate platform for creating, deploying, and managing AI agents, OpenAI Frontier, will only use Amazon’s cloud computing platform, AWS, as a third party cloud provider.

OpenAI’s current connection with Microsoft is unaffected by the partnership. According to the firms, Microsoft Azure continues to be the exclusive cloud provider for OpenAI’s APIs, which give users access to OpenAI’s models. Microsoft retains its exclusive license and access to intellectual property to OpenAI models and products, and OpenAI’s first-party products will remain hosted on Azure. It was unclear at first if Nvidia’s $30 billion investment superseded its previous September pledge to spend up to $100 billion in the firm.

(With Inputs From Reuters)

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