OpenAI has secured $110 billion in new funding from Amazon, Nvidia, and SoftBank, dramatically increasing its valuation to $730 billion, the company announced Friday.
Amazon is contributing $50 billion to the funding round, while Nvidia and SoftBank are each investing $30 billion, according to OpenAI. The investment more than doubles the size of OpenAI’s previous funding round and positions the artificial intelligence company for continued expansion amid growing competition from firms like Anthropic and Google.
The infusion of capital comes as the demand for computing power to support AI development surges, according to OpenAI CEO Sam Altman. “AI is going to happen everywhere. It’s transforming the whole economy, and the world needs a lot of collective computing power to meet the demand,” Altman said in a CNBC interview.
Alongside the investment, Amazon and OpenAI have forged a multiyear strategic partnership. The collaboration will focus on developing customized AI models to enhance Amazon’s customer-facing applications. OpenAI is also expanding its existing agreement with Amazon Web Services (AWS) by an additional $100 billion over the next eight years, with AWS designated as the exclusive third-party cloud distribution provider for OpenAI’s enterprise platform, Frontier.
The funding round also draws in investments from other tech giants. Earlier this year, Jeff Bezos, through his firm Explore Investments LLC, committed $100 million to Figure AI, a startup developing human-like robots. Microsoft is investing $95 million, and Nvidia and an Amazon-affiliated fund are each providing $50 million to Figure AI, which is also backed by OpenAI. The robot developer, valued at roughly $2 billion, aims to create general-purpose humanoid robots capable of working in diverse environments, including warehouses and retail settings.
Intel’s venture capital arm, LG Innotek, and Samsung’s investment group are also backing Figure AI, with investments of $25 million, $8.5 million, and $5 million respectively. Venture firms Parkway Venture Capital and Align Ventures are contributing $100 million and $90 million, respectively. ARK Venture Fund, Aliya Capital Partners, and Tamarack are also among the investors.
The surge in investment in AI startups follows the widespread adoption of OpenAI’s ChatGPT in November 2022, prompting investors to seek opportunities in the rapidly evolving field. OpenAI itself invested $5 million in Figure AI, having previously considered acquiring the robotics company.
Amazon, Nvidia, Microsoft, and Intel declined to comment beyond their respective investment announcements. Figure AI did not immediately respond to requests for comment.
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