Microsoft Backs $852bn-Valued OpenAI While Capex Jumps to $83bn
OpenAI secured $122bn in new funding at an $852bn valuation co-led by SoftBank, with Microsoft as a strategic investor among others. Meanwhile, Microsoft’s capex has surged to 47.4% of operating cash flow last fiscal year, reaching $83bn over four quarters and projected to exceed $110bn in 2026.
1. OpenAI Raises $122bn at $852bn Valuation
OpenAI secured $122bn in committed capital in its latest financing round at a post-money valuation of $852bn, exceeding the $110bn target. The round was co-led by SoftBank and included strategic investors Amazon, Nvidia, and Microsoft alongside Andreessen Horowitz, D.E. Shaw Ventures, MGX, TPG and T. Rowe Price advisers.
2. Microsoft Capex Doubles to Utility-Like Levels
Microsoft’s capital expenditure surged to 47.4% of operating cash flow in the most recent fiscal year, with $83bn spent over the last four quarters on AI infrastructure. Fiscal 2026 capex is projected to top $110–$120bn, reflecting urgent GPU and CPU deployments to meet growing Azure AI demand.
3. Strategic AI Partnership and Cloud Position
Microsoft remains the exclusive cloud provider for OpenAI’s APIs and first-party products on Azure while AWS powers OpenAI Frontier with Trainium chips. This dual partnership strategy cements Azure’s position as the default enterprise AI platform but places pressure on free cash flow.