Delivering on the anticipation that has been building up for past few months, OpenAI has closed one of the largest funding rounds in tech history, raising a massive $110 billion and reaching a valuation of about $730 billion. The round was led by three major players – Amazon, Nvidia, and SoftBank. Amazon is putting in $50 billion, with $15 billion already committed, while Nvidia and SoftBank are each contributing $30 billion. Importantly, this funding is about more than financial terms and comes with major strategic moves. The ChatGPT maker will use AWSâs cloud infrastructure for its enterprise AI platform, rely on Nvidiaâs top-of-the-line GPUs to train massive AI models and leverage SoftBankâs global network to accelerate its expansion around the world.
At a $730 billion valuation, the Sam Altman-led firm now stands among the most valuable private companies globally. The scale of the funding also shows the huge computational demands required to operate at the frontier of AI development. Training large language models requires vast GPU clusters running in parallel across energy-intensive data centers, often consuming power at gigawatt levels. And this round effectively secures OpenAI’s long-term capacity in both training and inference workloads.
In parallel, the AI giantâs quick user growth highlights why investors were willing to commit such an extraordinary amount. OpenAI reports that ChatGPT now serves more than 900 million weekly active users globally, making it one of the most widely used AI platforms in the world. In addition to its free user base, the company has surpassed 50 million consumer subscribers who pay for premium features and advanced capabilities. On the enterprise side, more than 9 million paying business users rely on ChatGPT for daily work, embedding AI into tasks ranging from drafting documents and writing code to analyzing data and automating workflows.
It is also worth noting that the financial impact of the new valuation extends beyond the companyâs commercial operations. The $730 billion valuation increases the value of the OpenAI Foundationâs stake in OpenAI Group to more than $180 billion. With expanded financial capacity, the foundation is positioned to fund philanthropic initiatives in areas like medical and health breakthroughs, global resilience to AI-driven disruptions, and research into AI safety and alignment.
The timing of this latest funding becomes even more critical as the AI firm has reportedly informed investors that it expects to invest about $600 billion in compute infrastructure by 2030, including data centers, advanced AI chips, and related technologies. At the same time, it is targeting more than $280 billion in revenue over the same period, while projecting about $100 billion in cumulative losses.
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