By Kate Rooney,Ashley Capoot
Publication Date: 2026-02-27 13:31:00
OpenAI announced a $110 billion funding round on Friday, a financing that’s more than double the size of its last raise a year ago, which was a record for a private tech company.
Amazon invested $50 billion, Nvidia invested $30 billion and SoftBank invested $30 billion in the round, OpenAI said in a release Friday. The investment boosts OpenAI to a $730 billion pre-money valuation, which marks a big jump from its $500 billion valuation in a secondary financing in October. Other investors are expected to join as the round progresses, OpenAI said.
“We’re super excited about this deal,” OpenAI CEO Sam Altman told CNBC’s “Squawk Box” on Friday. “AI is going to happen everywhere. It’s transforming the whole economy, and the world needs a lot of collective computing power to meet the demand.”
In addition to its participation in the funding round, Amazon announced a multiyear strategic partnership with OpenAI. The companies will develop customized models that will help power Amazon’s customer-facing applications as part of the agreement, according to a release.
OpenAI said it is expanding its existing $38 billion agreement with Amazon Web Services by $100 billion over the next eight years. AWS will also serve as the exclusive third-party cloud distribution provider for OpenAI’s enterprise platform Frontier, which it unveiled earlier this month.
The companies said Amazon’s $50 billion investment in OpenAI will start with an initial commitment of $15 billion, followed by another $35…
