ChatGPT maker OpenAI has secured USD 110 billion in funding from Amazon, Nvidia, and SoftBank, pushing the company’s pre-money valuation to USD 730 billion. Amazon is leading the trio of tech heavyweights with a commitment of USD 50 billion. Nvidia and SoftBank have each committed USD 30 billion, OpenAI co-founder and CEO Sam Altman said on Friday. Additional investors are expected to join as the funding round progresses.
Amazon will begin with an initial USD 15 billion investment and will contribute another USD 35 billion in the coming months under preset conditions.
Sam Altman: Scaling frontier AI for global use
In a statement, Altman said the partnerships will expand OpenAI’s global reach, deepen its infrastructure, and strengthen its balance sheet.
“These partnerships expand our global reach, deepen our infrastructure, and strengthen our balance sheet so we can bring frontier AI to more people, more businesses, and more communities worldwide,” he wrote.
Altman revealed that ChatGPT now has more than 900 million weekly active users and over 50 million consumer subscribers.
“We are entering a new phase where frontier AI moves from research into daily use at global scale,” he said. “Leadership will be defined by who can scale infrastructure fast enough to meet demand, and turn that capacity into products people rely on. This funding and these partnerships let us do both, and move faster on our mission to ensure AGI benefits all of humanity.”
OpenAI and Amazon expand multiyear partnership
OpenAI and Amazon’s multiyear partnership will include bringing advanced AI capabilities to enterprises. Amazon Web Services will serve as the exclusive third-party cloud distribution provider for OpenAI Frontier.
The two companies will expand their existing USD 38 billion multiyear deal by an additional USD 100 billion over eight years. They will also collaborate on developing customized AI models for Amazon developers to power customer-facing applications.
Partnership with Nvidia and Microsoft continues
OpenAI confirmed that it is also expanding its partnership with Nvidia.
The company has maintained a partnership with Microsoft since 2019. OpenAI stated that the newly announced funding and partnerships do not change the terms of its relationship with Microsoft.
“Nothing about the funding or new partners announced Friday in any way changes the terms of our relationship with Microsoft. The partnership remains strong and central,” OpenAI said in a statement.
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