OpenAI Nears $100B Raise at $850B Valuation in Historic Funding Push
Nvidia is expected to invest around $30 billion, with SoftBank, Amazon, and Microsoft also participating.
News
- Claude-Powered AI Agent Deletes Production Database in 9 Seconds
- AI Compute Costs Exceed Workforce Costs, Nvidia Executive Says
- Accenture Mass Deploys Microsoft's Copilot as Paid Adoption Continues to Lag
- OpenAI Eyes Smartphones with Chip Partners Qualcomm, MediaTek
- Google Joins OpenAI, xAI for a Classified AI Deal with Pentagon
- UAE Sets Up $272M Fund to Boost Local Industry and Secure Supply Chains
OpenAI is nearing what could become one of the largest private capital raises in history, as it finalizes plans to secure more than $100 billion in fresh funding at a valuation that may exceed $850 billion, according to multiple media reports.
If completed, the deal would value the ChatGPT maker roughly $20 billion higher than earlier expectations of $830 billion. Bloomberg reported that OpenAI’s pre-money valuation is expected to remain around $730 billion.
The fundraising round is expected to draw participation from a consortium of technology heavyweights and financial backers. Among them are Amazon, which has reportedly discussed investing up to $50 billion; SoftBank Group, which could contribute around $30 billion; Nvidia, which is reportedly close to finalizing a $30 billion stake; and Microsoft, OpenAI’s long-time strategic partner. Venture capital firms and sovereign wealth funds are also expected to join in later tranches, potentially pushing the total amount raised even higher.
Nvidia’s involvement is particularly significant. The chipmaker, whose graphics processing units power much of the global AI boom, is one of OpenAI’s largest suppliers. A person familiar with the matter told Reuters that Nvidia’s $30 billion investment would form part of the broader $100 billion-plus round. The move would further entangle the financial and strategic relationships among leading AI companies, as chip designers, cloud providers, and model developers deepen cross-holdings in the race to build more advanced systems.
The reported investment would also supersede an earlier commitment announced in September under which Nvidia planned to invest up to $100 billion to support OpenAI’s data center expansion. That agreement, according to prior reporting, was delayed as the two companies worked toward a definitive systems purchase arrangement. Much of the new capital OpenAI raises is expected to be directed toward acquiring Nvidia’s high-performance chips to train and deploy its increasingly large and complex AI models.
The fundraising push comes as OpenAI seeks to balance rapid expansion with a path toward profitability. The company has begun testing advertising within ChatGPT for free-tier users that could open new revenue streams but also risks alienating users accustomed to an ad-free interface.
