OpenAI Secures $110 Billion Round, Microsoft Retains Azure API Partnership
OpenAI raised $110 billion in a funding round valuing it at $730 billion pre-money and $840 billion fully diluted, with Amazon investing $50 billion and Nvidia and SoftBank each contributing $30 billion. Microsoft will remain the exclusive cloud provider for OpenAI APIs and host its first-party products on Azure.
1. Funding Round Details
OpenAI launched its latest funding round seeking $110 billion, which elevates its pre-money valuation to $730 billion and fully diluted valuation to $840 billion. The round aims to conclude before the company’s planned public debut later this year.
2. Investor Allocations and Terms
Amazon is leading the round with a $50 billion commitment—initial $15 billion deployment plus $35 billion conditional tranche—while Nvidia and SoftBank each dedicate $30 billion. Amazon Web Services will supply two gigawatts of Trainium-based computing capacity and win exclusive third-party cloud rights for the OpenAI Frontier platform.
3. Microsoft Partnership Status
Existing agreements with Microsoft remain intact, preserving its role as the exclusive cloud provider for OpenAI’s API services and hosting first-party products on Azure. This continuity underscores Microsoft’s strategic position in OpenAI’s ecosystem despite new large-scale investments from competing cloud vendors.