OpenAI’s $110B Round Excludes Microsoft, Stocks Drop 2.2%
OpenAI secured $110B in new investment at a $730B pre-money valuation, with $30B each from SoftBank and NVIDIA and $50B from Amazon, omitting Microsoft. Microsoft reaffirmed its 2019 AI partnership terms on Azure, but its shares slid 2.17% Friday after the announcement.
1. OpenAI Announces $110B Funding Round
OpenAI announced a $110 billion funding round at a $730 billion pre-money valuation, securing $30 billion each from SoftBank and NVIDIA and $50 billion from Amazon. Microsoft was notably absent from the list of investors and new strategic partnerships in the announcement.
2. Microsoft Reaffirms Partnership, Stock Drops
Microsoft issued a statement reaffirming its 2019-founded AI collaboration, revenue share agreements, IP terms and Azure as the exclusive cloud provider to OpenAI, confirming no changes to the partnership. Despite these assurances, Microsoft’s shares slid 2.17% in regular trading following the deal announcement.