OpenAI is reportedly closing in on a historic funding round that could land the world’s leading artificial intelligence (AI) startup up to $100 billion in fresh capital.
NVIDIA Corp., Amazon.com Inc., and Microsoft Corp. are in advanced talks to anchor the massive investment, a move that would cement OpenAI’s dominance in an increasingly expensive arms race, according to reports from The Information.
At the same time, the Wall Street Journal late Thursday said OpenAI is laying the groundwork with bankers for an initial public offering later this year.
The scale of the proposed mega-investment highlights the astronomical costs of developing next-generation AI. NVIDIA, whose specialized hardware serves as the bedrock for OpenAI’s models, is reportedly discussing an investment of up to $30 billion. Microsoft, the company’s primary long-term backer, is expected to contribute less than $10 billion to the current round.
Perhaps most notable is the entry of Amazon as a potential new investor. Sources indicate Amazon is weighing a commitment that could exceed $20 billion, The Information reported. Such a deal would likely be tethered to strategic commercial agreements, including an expansion of OpenAI’s use of Amazon Web Services (AWS) and the distribution of ChatGPT Enterprise through Amazon’s massive sales channels.
The push for capital comes as OpenAI faces a staggering financial trajectory. The company projects that infrastructure and computing costs between 2026 and 2030 could exceed $430 billion, with a projected cash burn of nearly $70 billion during that window. With a pre-investment valuation hovering around $730 billion, the infusion of cash is seen as a vital safeguard against market skepticism regarding OpenAI’s ability to meet its heavy commitments with partners like Oracle Corp. and Microsoft.
The deal also serves as a strategic defensive maneuver. Competitor Anthropic recently forecast its revenue could surpass OpenAI’s by 2029; however, a capital injection of this magnitude would dramatically shift the competitive landscape in OpenAI’s favor.
While Amazon, Microsoft, and NVIDIA have largely declined to comment or have not yet responded to inquiries, sources indicate that OpenAI is close to receiving formal letters of intent.
If the deal proceeds alongside rumored interests from SoftBank, which is mulling a $30 billion cash injection in the ChatGPT maker, OpenAI will not only have the most sophisticated models in the industry but also the deepest war chest in the history of Silicon Valley.
