ChatGPT Creator OpenAI Secures Massive $110B Investment Deal

The artificial intelligence company behind ChatGPT announced a record-breaking $110 billion funding round on Friday, with major investments from tech giants Amazon, Nvidia, and SoftBank. The deal values OpenAI at $840 billion as the company prepares for a potential public stock offering later this year.

The company behind the popular ChatGPT artificial intelligence tool announced Friday it has secured a massive $110 billion investment deal that places its total worth at $840 billion, demonstrating the intense competition among tech companies to dominate the AI market.

Three major technology firms are leading the investment: SoftBank will contribute $30 billion, Nvidia is putting in $30 billion, and Amazon plans to invest $50 billion total. This financial backing comes as OpenAI prepares for what could be one of the largest initial public stock offerings of the year.

Technology giants and major investors are competing aggressively to build stronger relationships with OpenAI, which requires enormous spending on data processing facilities, hoping these partnerships will provide advantages in the rapidly evolving artificial intelligence sector.

Amazon’s investment strategy involves an initial payment of $15 billion, with the remaining $35 billion to follow over the next several months once specific requirements are fulfilled.

Beyond the financial investment, Amazon and OpenAI have established a computing partnership where OpenAI will access 2 gigawatts of processing power using Amazon’s proprietary Trainium computer chips, according to both companies.

Amazon’s cloud service, AWS, has been designated as the sole external cloud provider for OpenAI Frontier, which is the enterprise version of the platform that helps businesses create, launch and oversee AI systems.

This new arrangement will not affect OpenAI’s current partnership with Microsoft. Microsoft Azure continues as the exclusive cloud service for OpenAI’s programming interfaces that allow access to the company’s AI models, both organizations confirmed.

OpenAI’s direct consumer products will remain on Microsoft’s Azure platform, and Microsoft retains its exclusive licensing rights and access to OpenAI’s technology and products.

Questions remain about whether Nvidia’s $30 billion commitment replaces a previous agreement from September in which Nvidia had pledged to invest as much as $100 billion in the startup.

Neither OpenAI nor Nvidia provided immediate responses when asked for clarification about their investment arrangements.