OpenAI Funding Round Aims for $100 Billion as Company Slashes Spending Plans by Over Half

OpenAI aims to secure $100 Billion in latest funding round, reportedly aiming for an $800 billion valuation -- Parties offering up cash include Nvidia, Microsoft, SoftBank, and more

OpenAI may be on the cusp of securing a new stockpile of cash to burn through, with the business looking to secure $100 billion in funding from a range of tech and investment firms, Bloomberg reports. The company is reportedly seeking a valuation of around $850 billion, according to the outlet's sources. With $1.4 trillion in pledged expenditure over the next eight years, OpenAI has enormous commitments to meet. While OpenAI is also preparing for an IPO later this year, its plans have not gone without criticism, with some reportedly coming from Nvidia CEO Jensen Huang himself. AI's circular strategy The circular nature of AI investment and infrastructure deals has been apparent since the earliest months of 2025, and it played out throughout most of last year. Nvidia invested in companies that often bought Nvidia chips, while tech firms investing in AI developers often sold those same companies cloud computing capacity. This latest tranche of funding for OpenAI appears to be much of the same. The key players in the deal are Amazon, Nvidia, Microsoft, and SoftBank, all of which have a mix of deals with one another and OpenAI already. Amazon's investment is rumored to be up to $50 billion, with the condition of that investment being that OpenAI uses more of its chips and cloud computing services. SoftBank is reportedly considering a $30 billion investment, while Nvidia's is said to be $20 billion, a fifth of the total $100 billion alliance made in September 2025. Although Microsoft's name was also thrown around by Bloomberg's sources, there was no speculation on what kind of financial contribution it would make to this round of funding. All companies involved are expected to finalize their investments by the end of February. As with other major investment deals, even the rumored news of this one sent stock prices rising. AI industry sceptics would suggest this is one more example of why the AI industry is in a bubble: Investments that haven't happened yet generate financial returns for these companies, even without any clear path to profitability. Projecting confidence It's been a while since any of the big AI companies have made any enormous, headline-grabbing announcements. Indeed, a lot of the meta-story surrounding AI in recent weeks has been a crisis of confidence. Microsoft CEO Satya Nadella was seeming wobbled by the "slop" moniker, and bubble name-calling; Nvidia's Jensen Huang specifying the details of its $100 billion partnership with OpenAI, and an increasing number of studies suggesting AI isn't helping improve productivity much, if at all. OpenAI is even projected to run out of cash entirely by 2027. But this week, the AI Impact Summit in India is being held, where all the major players in the industry are speaking. OpenAI's Sam Altman is there, as is Anthropic's Dario Amodei. OpenAI also released GPT 5.3 Codex, which is the first of OpenAI's deployments that marks a move away from being reliant solely upon Nvidia chips. According to Bloomberg, sources close to the matter suggested that this is just the first phase of funding supplied by major names in the industry, with more to come. Once the major tech firms have signed on, OpenAI is reportedly looking to generate further investment from venture capital firms, sovereign wealth funds, and other financial investors, leading to its eventual IPO. Although it's not explicitly stated, the fact that OpenAI is targeting these other sources after its industry contemporaries have taken the first step feels rather deliberate. Forever chasing its tail With significant spending commitments already booked in, OpenAI is clearly looking toward how it might fulfill the titanic amount of spending. At the AI India summit, it's still making more commitments for new data center deals, expending more money it doesn't yet have, on the back of confidence generated by deals that have yet to be finalized, or in some cases even officially announced. So, despite the latest funding round, reportedly backed by some of the biggest companies in the world, OpenAI still has a long road to having enough cash to deliver on its promises.

OpenAI Funding on Track to Top $100 Billion With Latest Round

OpenAI is close to finalizing the first phase of a new funding round that is likely to bring in more than $100 billion, according to people familiar with the matter, a record-breaking financing deal that would give the startup additional capital to build out its artificial intelligence tools. As the ChatGPT maker prepares to spend trillions in infrastructure investment, the overall valuation of the company, including the eventual funding, could exceed $850 billion, according to some of the people. That's higher than the $830 billion initially expected. The company's pre-money value will remain $730 billion, said one person, all of whom asked not to be identified discussing private information. The first portion of the funding round will largely come from strategic investors including Amazon.com Inc., SoftBank Group Corp., Nvidia Corp. and Microsoft Corp., the people said. If those companies invest near the highest ranges of what has been discussed, those commitments will near $100 billion. Those companies are expected to finalize their allocations by the end of this month, some of the people said. The next phase of the deal -- which will include venture capital firms, sovereign wealth funds and other financial investors -- is expected to close later, and may bring the total fundraising amount substantially higher, some of the people said. The deal is not yet finalized and the details could change, some of the people said. Representatives for OpenAI, Amazon, Nvidia, SoftBank and Microsoft either declined to comment or did not immediately respond to requests for comment. In connection with the upcoming deal, Amazon is expected to invest up to $50 billion, SoftBank is set to invest as much as $30 billion, and Nvidia has discussed putting in $20 billion, Bloomberg previously reported. The money from corporate investors is expected to come in several tranches, or installments, over the course of the current year, some of the people said. As part of its partnership with Amazon, OpenAI is expected to expand its use of Amazon's chips and cloud computing services, said one of the people.

Nvidia, OpenAI near $30 billion investment in place of unfinished $100 billion deal, FT reports

Feb 19 (Reuters) - Nvidia (NVDA.O), opens new tab is close to finalizing a $30 billion investment into OpenAI that will replace the long-term $100 billion commitment agreed upon by the companies last year, the Financial Times reported on Thursday, citing sources. The deal, which would be part of a new funding round for the artificial intelligence start-up, could be finalized as early as this weekend, the report added. Reuters could not immediately verify the report. Nvidia declined to comment. ChatGPT maker OpenAI is looking to raise up to $100 billion in its latest funding round, valuing it at about $830 billion, Reuters reported in January. OpenAI will reinvest much of its new capital into Nvidia hardware, but the companies will not proceed with the $100 billion multi-year investment partnership they announced in September, according to the FT report. Reporting by Carlos Méndez in Mexico City; Editing by Rashmi Aich Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI resets spending expectations, tells investors compute target is around $600 billion by 2030

OpenAI is telling investors that it's now targeting roughly $600 billion in total compute spend by 2030, months after CEO Sam Altman touted $1.4 trillion in infrastructure commitments. The artificial intelligence company is providing a lower number and more defined timeline for its planned spending, sources told CNBC, as broader concerns mounted that expansion ambitions were too great for the potential revenue that would follow. OpenAI is projecting that its total revenue for 2030 will be more than $280 billion, with nearly equal contributions from its consumer and enterprise businesses, said the sources, who asked not to be named because the information is private. The spending plan the company is offering is meant to more directly tie to its expected revenue growth, the people said. In the back half of last year, OpenAI announced a flurry of multibillion-dollar infrastructure deals, partnering with leading chipmakers and cloud companies. OpenAI is finalizing a massive funding round that could total more than $100 billion, with about 90% coming from strategic investors, one person said. Nvidia is in discussions to invest up to $30 billion in OpenAI as part of the round that could value the company at a $730 billion pre-money valuation, CNBC has confirmed. In addition to Nvidia, strategic investors in the funding include SoftBank and Amazon. OpenAI generated $13.1 billion in revenue in 2025, the sources said, up from its $10 billion target. The company burned through $8 billion, lower than its $9 billion target, they said. The startup was founded as a nonprofit research lab in 2015, and it rocketed into the mainstream following the launch of its chatbot ChatGPT in 2022. ChatGPT now supports more than 900 million weekly active users, the people said, up from 800 million as of October. OpenAI declared a "code red" in December to focus on improving the chatbot in the face of competition from rivals Google and Anthropic. ChatGPT had a dip in growth in the fall, but is back to record highs in both weekly active and daily active users, the people said. The company's coding product, Codex, has surpassed more than 1.5 million weekly active users, the people said. Codex competes directly with Anthropic's Claude Code, which has seen a wave of adoption over the last year.

OpenAI Massively Cuts Spending Plan as Reality Closes in

During a November podcast appearance alongside OpenAI investor Grad Gerstner, CEO Sam Altman lost his cool. After Gerstner challenged him on how a company "with $13 billion in revenues" can "make $1.4 trillion of spend commitments" through 2030, Altman got catty. "If you want to sell your shares, I'll find you a buyer," Altman snapped. "Enough." At the time, despite certain pangs of panic over a growing AI bubble, the hype was at an all-time high. OpenAI was already burning through oodles of cash, committing to spend hundreds of billions a year on data center buildouts. But the tone has noticeably shifted since then, with investors growing uneasy about big tech companies trying to one-up each other with astronomical planned capital expenditures, further straining a stock market that's become massively overindexed on AI. Meanwhile, OpenAI has been watching as major competitors in the space have made leaps and bounds to catch up with its early lead. Some, like Google, have deeply established revenue sources bankrolling at least a portion of their AI spending commitments. Now, Altman has seemingly noticed the company may be in way over its head. As CNBC reports, the company is now telling investors it's targeting around $600 billion in total compute spend by 2030, which is well under half of its original $1.4 trillion commitment. To put that into perspective, the company made just $13.1 billion in revenue for all of 2025 -- while also burning through $8 billion, per CNBC's sources. It's a massive downshift, highlighting the company's apparent attempt to calm investors, who've grown uneasy over massive spending plans. Tech companies including Amazon and Microsoft have seen their shares plummet earlier this year after announcing they remained devoted to their vast commitments. Altman had already declared "code red" towards the end of last year, directing his workers to double down on ChatGPT at the cost of delaying other projects to keep up with an ever-stronger competition. The company has also announced that it will soon be stuffing its blockbuster chatbot with ads, news that was met with derision from competitors. The ongoing division seems to have strained relationships among AI executives. During an appearance alongside a dozen other industry and political leaders at the recent AI Summit in New Delhi, India, Altman and Anthropic CEO Dario Amodei refused to hold hands after being instructed by prime minister Narendra Modi -- in what one Redditor described as a "cringe masterpiece."

OpenAI forecasts its revenue will top $280 billion in 2030 | Fortune

The revenue forecast reflects OpenAI's strong momentum in subscription sales for its AI software to consumers and businesses. OpenAI also recently began testing advertising for certain users, creating a new potential moneymaker for the company. OpenAI Chief Financial Officer Sarah Friar recently said the company's annualized revenue topped $20 billion in 2025, up from roughly $6 billion the year prior. CNBC was first to report the new revenue estimate. Like its peers, OpenAI is racing to convince more companies and users to pay up for its AI services to help offset the immense cost of chips, data centers and talent needed to build its technology. OpenAI previously said it has committed to spend more than $1.4 trillion on infrastructure for AI in the coming years. The company is now telling investors it's planning to spend about $600 billion by 2030, said the person, who spoke on condition of anonymity to discuss private matters. OpenAI is close to finalizing the first phase of a new funding round that is likely to bring in more than $100 billion, Bloomberg News has reported. The overall valuation of the company, including the eventual funding, could exceed $850 billion.

OpenAI said to be finalizing $100 billion funding round

Less than a year after it closed the largest fundraising round by a private tech company in history, OpenAI is closing in on a new record. Bloomberg reports the AI giant is close to finalizing a round that is expected to top $100 billion. That's expected to boost the company's valuation to more than $850 billion. The round, which has been rumored for months, has not yet closed, but backers are expected to finalize their allocations by the end of the month. Among the companies expected to put money into OpenAI are Amazon $AMZN (which could invest as much as $50 billion), SoftBank (expected to invest $30 billion), Nvidia $NVDA ($20 billion) and Microsoft $MSFT. Venture capital firms would decide their investments following the corporate commitments. While $100 billion more than doubles the record $40 billion OpenAI raised last March, the company is continuing to spend trillions of dollars in infrastructure - and it has massive financial commitments to companies like Nvidia and Oracle $ORCL. While market watchers are starting to wonder when these investments will begin to turn a profit, OpenAI founder and CEO Sam Altman told CNBC that's not the company's focus at present. "We are growing at an extremely fast rate right now," he said. "I think as long as we can have reasonable unit economics, we should focus on continuing to grow faster and faster, and we'll get profitable when we think it makes sense." All of this comes as OpenAI is barreling toward an IPO, perhaps as early as later this year. The company and rival Anthropic are reportedly in a horserace to be the first major AI company to go public.

Nvidia nears deal for scaled-down investment in OpenAI: report

San Francisco (United States) (AFP) - Nvidia is on the cusp of investing $30 billion in OpenAI, scaling back a plan to pump $100 billion into the ChatGPT maker, the Financial Times reported Thursday. The AI-chip powerhouse will be part of OpenAI's new funding round with an agreement that could be concluded as early as this weekend, according to the Times, which cited unnamed sources close to the matter. Nvidia declined to comment on the report. Nvidia chief executive Jensen Huang has insisted that the US tech giant will make a "huge" investment in OpenAI and dismissed as "nonsense" reports that he is unhappy with the generative AI star. Huang made the remarks late in January after the Wall Street Journal reported that Nvidia's plan to invest up to $100 billion in OpenAI had been put on ice. Nvidia announced the plan in September, with the investment helping OpenAI build more infrastructure for next-generation artificial intelligence. The funding round is reported to value OpenAI at some $850 billion. Huang told journalists that the notion of Nvidia having doubts about a huge investment in OpenAI was "complete nonsense." Huang insisted that Nvidia was going ahead with its investment in OpenAI, describing it as "one of the most consequential companies of our time". "Sam is closing the round, and we will absolutely be involved in the round," Huang said, referring to OpenAI chief executive Sam Altman. "We will invest a great deal of money." Nvidia has become the coveted supplier of processors needed for training and operating the large language models (LLM) behind chatbots like OpenAI's ChatGPT or Google Gemini. LLM developers like OpenAI are directing much of the mammoth investment they have received into Nvidia's products, rushing to build GPU-stuffed data centers to serve an anticipated flood of demand for AI services. The AI rush, and its frenzy of investment in giant data centers and the massive purchase of energy-intensive chips, continues despite signs of concern in the markets.

OpenAI Tempers Compute Spending Target To $600 Billion, Projects $280 Billion Revenue By 2030 As Mega Funding Round Nears: Report - Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT)

OpenAI is reportedly tempering some of its most aggressive infrastructure plans, telling investors it now expects to spend roughly $600 billion on computing power through 2030. Sees $280 Billion In Revenues By 2030 OpenAI's latest targets aim to align its capital outlays with expected revenue growth, according to the report. The company projects total revenue of more than $280 billion by 2030, with contributions split roughly evenly between consumer and enterprise segments, the report added. The company did not immediately respond to Benzinga's request for comment. OpenAI said that its annualized revenue run rate exceeded $20 billion in 2025, a 233% increase from 2024. What It Means for Funding And Growth OpenAI's adjusted spending roadmap arrives amid a major fundraising push, with the company approaching a funding round that could exceed $100 billion and potentially support a future IPO. The investment round, which includes strategic investors like the Japanese conglomerate SoftBank (OTC:SFTBY) and Amazon, could value the company at a $730 billion pre-money valuation, CNBC reported. Launched in 2015 as a non-profit artificial intelligence research lab, OpenAI surged into the global spotlight after unveiling its chatbot ChatGPT in 2022. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

NVIDIA's Revised Investment in OpenAI Expected to Be More Than "Three Times Lower" Than What the Industry Originally Believed

Details about NVIDIA's financing scheme towards OpenAI are here, and it is claimed that the company intends to invest 'one-third' of the initial figure everyone perceived. Team Green's investments and stake acquisitions are attracting significant attention in the industry, as they are an indirect indicator of where the world of AI is moving. We have extensively reported the NVIDIA-OpenAI story, but one of the more interesting aspects of this fiasco is actually the financial commitments involved. For those unaware, NVIDIA and OpenAI agreed a few months ago, disclosing that Jensen & Co. will invest "up to" $100 billion in the frontier AI lab. However, things took a turn when reports and Jensen's own comments revealed that the initial figure wasn't a 'one-time' investment, but rather a gradual process. This did pop up uncertainity within the industry, given that questions started to rise on why NVIDIA hasn't formulated a deal with OpenAI yet; however, according to a Reuters report, it is disclosed that NVIDIA plans to participate in OpenAI's upcoming investment round, claimed to be worth up to $100 billion. In terms of what Jensen will commit, it is disclosed that NVIDIA is finalizing a $30 billion agreement with OpenAI, marking its largest-ever partnership. Previous investments by NVIDIA include a $20 billion Groq licensing agreement and a 4% stake in Intel worth $5 billion. It's important to note that we mention the $100 billion figure was 'originally believed' because NVIDIA wasn't entirely committed to the investment it would make in OpenAI when the initial announcement came in. However, we do know that, in terms of infrastructure, OpenAI is expected to be one of the earliest Vera Rubin customers and plans to acquire up to 10 GW of NVIDIA's AI compute in the upcoming years; however, this could change as the current OpenAI financing round ends. The NVIDIA-OpenAI fiasco has not only evolved into a race for ownership but also a competition for compute. According to reports, OpenAI wasn't entirely comfortable with NVIDIA's hardware stack on latency alone, and the company had plans to pursue competitors like Groq and Cerebras, given their SRAM-focused approach. While NVIDIA certainly promotes competition, seeing a key partner pivot to alternatives isn't the best scenario, which could be one of the reasons the fiasco ignited in the first place.

Nvidia Nears $30 Billion Stake in Record-Breaking OpenAI Funding Round | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The Nvidia investment would be part of a funding round in which OpenAI is seeking to raise $100 billion at a valuation of $830 billion, according to the report. Other likely participants in the round include SoftBank and Amazon, the report said. Much of the new capital is likely to be used to purchase Nvidia chips to power OpenAI's AI models, per the report. It was reported Feb. 1 that Nvidia CEO Jensen Huang said the company's proposed $100 billion investment into OpenAI was "never a commitment" and that "we will invest one step at a time." Days earlier, it was reported that the planned investment had stalled after some people within Nvidia began having doubts about the deal. Responding to reports that he was unhappy with OpenAI, Huang said in the Feb. 1 report: "We will invest a great deal of money. I believe in OpenAI. The work that they do is incredible. They're one of the most consequential companies of our time." It was reported Wednesday (Feb. 18) that OpenAI is close to concluding the initial phase of a record-breaking round of funding that is likely to take in upwards of $100 billion and value the startup at more than $850 billion. That report said the first portion of the funding round will most likely come from strategic investors such as Amazon, SoftBank, Nvidia and Microsoft. It was reported Jan. 29 that Amazon is discussing investing as much as $50 billion in OpenAI and that the negotiations are being led by Amazon CEO Andy Jassy, who has been directly involved in talks with OpenAI's leadership. Earlier reports said SoftBank is in discussions to invest up to $30 billion more in OpenAI, adding to its existing stake, and that OpenAI is also exploring capital from Middle Eastern sovereign wealth funds and venture firms. It was reported Jan. 15 that OpenAI is lining up suppliers to support a major product expansion over the next few years that could include data centers, robotics and consumer devices.

Nvidia Pivots To $30 Billion Direct Stake In OpenAI, Decoupling From $100B Milestone Plan As Sam Altman Hopes To Remain 'Gigantic Customer' - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. (NASDAQ:NVDA) has entered the final stages of a landmark $30 billion equity investment in OpenAI, effectively replacing a massive $100 billion infrastructure agreement that had been the subject of intense market speculation. A Strategic Decoupling The $30 billion deal, confirmed by sources close to the negotiations, marks a significant pivot from the "non-binding" letter of intent signed in September 2025. That original plan contemplated a $100 billion investment tied to the deployment of 10 gigawatts of computing power. Instead, the new $30 billion commitment is a direct stake in OpenAI's current funding round, which is being raised at a $730 billion pre-money valuation. Crucially, CNBC noted that this investment is "not tied to any deployment milestones," granting both companies more flexibility as the AI landscape shifts. Altman Shrugs Off 'Insanity' "We love working with Nvidia," Altman said, emphasizing that OpenAI expects to remain a "gigantic customer" for the long term. Despite reports of OpenAI exploring internal chip designs, Altman clarified that the company will continue to utilize a "rich portfolio" of hardware, including Nvidia's upcoming Vera Rubin platform. The 'Too Big To Fail' Concern Altman pushed back on these concerns, stating that "revenue is growing so fast" across the ecosystem that the investments are supported by real-world demand rather than artificial loops. OpenAI's revenue reportedly surged past $20 billion in 2025, providing a buffer for its high annual burn rate. "The energy here and what people are building is remarkable," Altman told CNBC, referring to the global AI buildout. "We're in the beginning of the largest infrastructure buildout in history." Market Impact Nvidia's shift to a direct equity stake is seen as a validation moment for tech stocks. By decoupling from the 10-gigawatt milestone plan, Nvidia secures a significant ownership position in the AI leader while avoiding the rigid capital commitments that had previously concerned internal executives and regulators alike. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: Mijansk786 on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

OpenAI Does a Numbers Reset That Seems Plausible; But is it Feasible?

For starters, the overall spends dropped from the earlier $1.4 trillion to about $600 billion till 2030 When OpenAI gives out revenue numbers, the world sits up and takes notice. Not because they actually believe everything that's said, but because of the rarity of the event itself in the PR universe that the world's largest AI business startup abodes. The one number that stood out was the cost of running AI models that quadrupled in 2025 resulting in gross margins to fall to 33%, way below the 46% that they had expected. While this number went relatively unnoticed, the number that caught the eye was its projected revenues of $280 billion for 2030 with almost equal contributions for its customer and enterprise businesses. However, it also said that $600 billion would be spent towards total compute by the terminal year. These datapoints were featured by CNBC. The company claims that by 2030, revenues grow by about $100 billion, which would be 54% higher than the 2029 topline with cash flows shifting from negative to positive by $90 billion. And how would this savings happen? Sam Altman's team expects the cost of training the AI models would drop to $28 billion by that time, thus offsetting some of the inference costs. Sounds plausible, right? Definitely so but one would require some granular information before one can say that the math isn't a bit too convenient. In fact, short-seller Jim Chanos took to X last week to suggest that "these five-year AI forecasts are just guesses. models, known as inference. Maybe it's reasonable of OpenAI to assume the models won't need so much training by that point but still, that arithmetic seems a little too convenient. You can understand why short seller Jim Chanos suggested on X on Friday night that "these five year AI forecasts are just guesses." Be that as it may, the AI company's numbers may be lower, but appear more defined in terms of timelines and milestones, including Altman's much-hyped $1.4 trillion commitments to bolster AI infrastructure. Makes us wonder why OpenAI is now tempering its ambitions and potential revenue opportunities, especially when an IPO is round the corner in 2026. Maybe, these numbers are to assuage prospective investors as OpenAI finalises another massive funding round that could total over $100 billion, a large chunk coming out of strategic investments. There have been stories about Nvidia, Amazon and a few others lining up to be a part of the fund raise. The company generated $13.1 billion in revenues during 2025, up from the $10 billion target though the company also burnt $8 billion during the period, which was slightly below the target of $9 billion. Can these numbers grow at the pace that OpenAI wants us to believe? Or would Chanos prove his point? Only time will tell.

OpenAI Eyes $280 Billion in Revenue by 2030 With Growth in Enterprise and Consumer AI

OpenAI Targets Paid AI Growth in Consumer and Enterprise Markets OpenAI's revenue outlook reflects momentum in paid subscriptions for its AI software across consumer and business offerings. The company has focused on expanding usage while converting more users into paying customers. OpenAI Chief Financial Officer Sarah Friar said the company's annualized revenue topped $20 billion in 2025, up from roughly $6 billion the year before. The comments highlight how quickly has increased monetization since rolling out products for both individual and enterprise customers. OpenAI has not provided a public line-by-line breakdown behind the $280 billion target. Even so, the figure signals expectations of continued growth in recurring revenue, including larger enterprise contracts and broader adoption of AI tools inside workplaces. The company has also begun testing advertising for some users, which adds a potential revenue stream alongside subscriptions. OpenAI has not disclosed revenue expectations from ads or a timeline for a wider release.

OpenAI funding round on track to top $100 bln- Bloomberg By Investing.com

Investing.com-- OpenAI is close to finalizing the first phase of a new funding round that is slated to raise over $100 billion, Bloomberg reported on Thursday, citing people familiar with the matter. The latest funding round could value the ChatGPT maker at more than $850 billion, the Bloomberg report said. OpenAI's pre-funding valuation will remain at around $730 billion, the report. Get breaking news on Wall Street's AI giants by subscribing to InvestingPro The record-breaking capital raise comes as the company prepares to spend trillions on building out its AI infrastructure ambitions in the next decade. Earlier reports had listed several Wall Street majors, including Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Amazon.com Inc (NASDAQ:AMZN), as participants in the funding round. The capital injection is also expected to help OpenAI weather the massive costs of training and developing its AI models- costs which have seen the company remain squarely in loss-making territory in recent years. OpenAI, which is the world's most valuable startup, is expected to keep losing money until at least 2029, although the company is also projected to sharply ramp up its revenue growth in the coming years. The startup is also expected to head for an initial public offering by as soon as end-2026, recent reports showed.

NVIDIA to Invest $30B in OpenAI, Unfinished $100B Multi-Year Plan to be Replaced

OpenAI Raises $6.6 Billion in Fresh Funding from Microsoft and Nvidia OpenAI plans to reinvest a substantial portion of the new capital into NVIDIA hardware. The AI developer relies heavily on Nvidia's advanced chips to train and run large language models, including ChatGPT. This spending supports the expansion of data centers and computing infrastructure. The funding round ranks among the largest private capital raises in technology. It reflects sustained investor interest in artificial intelligence despite recent market volatility. Since the start of the year, US technology stocks have declined by around 17%, driven partly by concerns about AI valuations and sector concentration. Industry observers have noted that earlier complex agreements in the AI ecosystem raised questions about circular financial structures. Model developers, chip suppliers, and cloud providers often held stakes in one another while serving as customers. The revised Nvidia-OpenAI deal reduces that complexity by focusing on direct equity participation. Sam Altman, OpenAI's chief executive, recently stated on social media that the company values its relationship with the chip-making giant and expects to remain a major customer. said, "We love working with NVIDIA, and they make the best AI chips in the world," in an X post. NVIDIA chief executive Jensen Huang has also described the company's planned investment in OpenAI as substantial. Both executives have publicly dismissed suggestions of strained relations.

Nvidia close to investing $30 billion in OpenAI's mega funding round, source says

Feb 19 (Reuters) - Nvidia is close to finalizing a $30 billion investment in OpenAI, as the chipmaker moves to take a stake in one of its largest customers, a person familiar with the matter said. The investment is part of a fundraising round in which OpenAI is seeking more than $100 billion, the person said. That would value the ChatGPT maker at about $830 billion and amount to one of the largest private capital raises on record. SoftBank Group and Amazon are also likely to participate in the round, Reuters previously reported. The investment would highlight increasingly intertwined relationships among major technology companies racing to build advanced AI systems, as chip suppliers, cloud providers and model developers deepen financial and strategic ties. It would replace a commitment announced in September under which Nvidia would invest up to $100 billion to support OpenAI's use of its chips in data centers, the Financial Times reported on Thursday. Nvidia declined to comment when contacted by Reuters. The chipmaker had planned to invest an initial $10 billion once the two sides reached a definitive agreement for OpenAI to purchase Nvidia systems, Reuters reported in September. The agreement ended up taking much longer than both parties expected, the person said on Thursday. OpenAI is set to use much of the fresh capital to purchase Nvidia's chips, which power the training and deployment of its artificial intelligence models, the person said, declining to be identified as they were not authorized to speak publicly on the matter. (Reporting by Carlos Méndez in Mexico City and Krystal Hu in San Francisco; Editing by Rashmi Aich and Christopher Cushing)