Microsoft-Backed OpenAI Raises $122B; Microsoft Signs Five-Year Stellantis AI Deal
Investors poured $300B into startups in Q1 2026, with $242B (80%) directed to AI; Microsoft-backed OpenAI raised $122B at an $852B valuation. Separately, Microsoft signed a five-year AI deal with Stellantis to deploy over 100 initiatives.
1. Global Q1 AI Funding Surge
Investors allocated $300B across 6,000 startups in Q1 2026, jumping more than 150% quarter-over-quarter and year-over-year. AI companies captured $242B or 80% of total funding, up from 55% in the same period last year, signaling a shift toward concentrated investment in AI technologies.
2. Microsoft-Backed OpenAI's Record Funding
OpenAI, backed by Microsoft, secured $122B in its latest funding round at an $852B valuation, marking the largest venture round on record. The infusion underscores continued investor confidence in unprofitable AI ventures and boosts Microsoft's strategic position in the AI ecosystem.
3. Five-Year Microsoft-Stellantis AI Partnership
Microsoft entered a five-year agreement with Stellantis to deploy artificial intelligence across more than 100 operational and engineering initiatives. The partnership aims to enhance manufacturing efficiency, predictive maintenance, and in-car AI experiences using Microsoft's cloud and AI platforms.