Stock Markets March 1, 2026

OpenAI Reaches $840 Billion Valuation as Amazon, Nvidia and SoftBank Lead $110 Billion Funding Round

Massive private financing aims to underwrite surging compute and R&D spending as competition in AI intensifies

By Sofia Navarro AMZN
OpenAI Reaches $840 Billion Valuation as Amazon, Nvidia and SoftBank Lead $110 Billion Funding Round
AMZN

OpenAI's newest financing round values the company at $840 billion and includes a $110 billion package led by SoftBank, Nvidia and Amazon. The multi-phased deal is structured with conditions and tranches, and pairs large equity commitments with expanded cloud and hardware arrangements to support growing compute needs and product expansion ahead of an anticipated IPO.

Key Points

  • OpenAI's latest private funding round values the company at $840 billion, with a $110 billion package including $30 billion from SoftBank, $30 billion from Nvidia and $50 billion from Amazon.
  • SoftBank's investment will total $64.6 billion and represent roughly 13% ownership, delivered in three phases with the first $10 billion tranche expected to close by April 1; preferred shares will convert to common shares at IPO.
  • Amazon's $50 billion stake is paired with expanded cloud commitments - OpenAI will use two gigawatts of Trainium-powered capacity, commit an additional $100 billion to AWS over eight years, and AWS will be the exclusive third-party cloud provider for OpenAI Frontier.

Overview

OpenAI's most recent capital raise has set the company valuation at $840 billion, as major technology firms and investor Masayoshi Son's SoftBank commit to a combined $110 billion financing package. The blockbuster private round, one of the largest recorded, is structured across phases with a variety of conditions attached and is intended to help the ChatGPT maker meet steep compute and research and development costs as it prepares for a planned mega-IPO later this year.


Who is investing and how the round is structured

The $110 billion financing includes a $30 billion commitment from SoftBank, $30 billion from Nvidia and $50 billion from Amazon. OpenAI said additional investors are expected to join as the round progresses.

SoftBank said its investment in OpenAI will amount to $64.6 billion overall, translating to an ownership stake of about 13%. That investment will arrive in three phases over the coming year, with the first tranche of $10 billion expected to close by April 1. As part of the arrangement, SoftBank will receive preferred shares that will convert into common shares at the time of an IPO.

SoftBank indicated the initial $30 billion will be financed via bridge loans and capital raises from major financial institutions. To free up capital for the OpenAI investment, the Japanese conglomerate has sold stakes in existing holdings, including Nvidia.


Strategic aims and competition

OpenAI said the infusion of capital will support access to advanced AI chips and the computing capacity necessary to sustain its position in a crowded field that now includes Anthropic and Alphabet's Google. The launch of Google's Gemini 3 in November was noted as strengthening Google's footing, while Anthropic has gained ground in enterprise AI with a specialized coding tool.

OpenAI, which has yet to post a profit, is targeting roughly $600 billion in total compute spend through 2030, according to a source cited last week. The new funding and vendor arrangements are positioned to address those near-term and multi-year compute needs.


Nvidia's role and technical capacity

Nvidia's $30 billion investment further entwines the chipmaker and one of its largest customers. The company will provide OpenAI with access to its latest Rubin systems, which the parties described as representing five gigawatts of computing capacity - an amount the companies equated to enough energy to power millions of U.S. households. It was not immediately clear whether Nvidia's $30 billion replaces a prior commitment announced in September under which Nvidia had agreed to invest up to $100 billion in OpenAI.

After Nvidia said it would channel funds back into the AI ecosystem rather than increasing shareholder returns, the chipmaker faced negative reactions from some shareholders earlier this week.


Amazon partnership and cloud arrangements

Amazon will invest $50 billion as part of the round. The companies said OpenAI will utilize two gigawatts of computing capacity powered by Amazon's in-house Trainium AI chips. The investment is accompanied by an expansion of a cloud agreement that was originally valued at $38 billion.

Under the expanded terms, OpenAI said it would spend an additional $100 billion on Amazon Web Services over the next eight years. The companies also said Amazon will initially invest $15 billion followed by another $35 billion in coming months, contingent on specified conditions. OpenAI and Amazon will collaborate on developing customized models for Amazon's engineering teams.

Amazon will serve as the exclusive third-party cloud provider for OpenAI Frontier, the startup's enterprise platform for building and running AI agents.


Microsoft's position

Microsoft and OpenAI issued a joint statement to delineate limits on the scope of work Amazon and OpenAI can perform together without involving Microsoft's Azure cloud unit. The companies said the partnership does not alter OpenAI's relationship with Microsoft. Azure remains the exclusive cloud provider for OpenAI's APIs that allow access to its models, and OpenAI's first-party products, including Frontier, will continue to be hosted on Azure.


User growth and monetization

OpenAI reported that ChatGPT now serves more than 900 million weekly active users and that the company has surpassed 50 million consumer subscribers. The firm added that January and February are on track to be its largest months for new subscriber additions.


Market context and investor concerns

Industry observers have flagged concerns about potential "circular" financing structures, in which firms invest in one another while simultaneously signing supply agreements, potentially amplifying reported demand and revenue. Those worries come as tech stocks, after years of strong gains, experienced sharp declines in 2026 amid skepticism over whether AI investments will deliver returns that justify very high valuations.


Remaining questions

OpenAI and Nvidia did not immediately respond to requests for clarification on whether the newly announced $30 billion replaces Nvidia's earlier commitment to invest up to $100 billion. As the funding round unfolds in tranches and with additional investors expected to join, further details and clarifications are likely to emerge.


Note: This report summarizes the financing commitments, strategic cloud and hardware arrangements, reported user metrics and market reactions as presented by the companies and sources cited in the statements released with the funding announcement.

Risks

  • Potential for 'circular' financing arrangements where companies both invest in and sign supply deals with one another, a structure that could inflate perceived demand and revenue - this concern affects technology and cloud infrastructure sectors.
  • Market skepticism about lofty AI valuations has been linked to sharp declines in tech stocks in 2026, reflecting uncertainty over whether AI investments will generate returns sufficient to justify current valuations - this risk affects investors and equity markets.
  • Ambiguity around Nvidia's prior commitment: it is unclear whether the newly announced $30 billion replaces an earlier pledge of up to $100 billion, leaving questions about the exact terms of Nvidia's involvement and future hardware supply commitments.

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