OpenAI in Advanced Talks for Massive Funding Round, Eyeing Up to $40 Billion from Tech Titans Nvidia, Amazon, and Microsoft
OpenAI is negotiating what could become one of the largest private funding rounds in tech history, with talks centering on investments from its most critical partners, according to a Financial Times report. The artificial intelligence pioneer is seeking to raise billions to fuel its next phase of growth, which includes a massive build-out of global data center capacity.
Citing people familiar with the matter, the report indicates chipmaker Nvidia could lead the round with an investment of up to $20 billion. E-commerce and cloud giant Amazon is considering a commitment of $10 billion or more. Microsoft, which already holds a 27% stake in OpenAI from a previous $13 billion investment, is also expected to contribute a significant sum, though the exact figure remains undisclosed. A separate report from The Information suggests the total ask from these three companies could be as high as $60 billion.
The potential Nvidia investment raises questions about its relationship to a previously reported $100 billion data center project, codenamed "Stargate," being developed by the two companies. It is unclear if the $20 billion would be part of that initiative or a separate strategic investment.
This funding push follows a series of reports about OpenAI's aggressive capital strategy. Earlier this month, CEO Sam Altman was said to be courting Middle Eastern sovereign wealth funds for a separate $50 billion raise. Japanese conglomerate SoftBank has also been named as a potential investor in talks involving up to $30 billion. Analysts suggest OpenAI is aiming for a total raise of up to $100 billion at a staggering valuation of approximately $830 billion.
The capital is urgently needed. OpenAI's expansion plans, particularly the development of more powerful AI models, are intensely computationally demanding. "This isn't just about building more chatbots; it's about constructing the foundational infrastructure for the next generation of AI," said Dr. Anya Sharma, a technology analyst at Horizon Insights. "The scale of investment required mirrors the scale of their ambition to maintain a decisive lead in the field."
In a related development, OpenAI recently announced it would begin testing advertisements in its free ChatGPT tiers. Altman has assured users that ads will not influence AI responses and that advertisers will not have access to conversation data. Concurrently, Altman noted that AI-driven productivity gains are allowing the company to achieve more with smaller teams, leading to a moderated hiring pace even as overall output grows.
Representatives for OpenAI, Nvidia, Amazon, and Microsoft declined to comment when contacted for this story.
Industry Reactions
Marcus Chen, Venture Partner at DeepTech Capital: "This isn't merely funding; it's a consolidation of the AI ecosystem's supply chain. By bringing its primary chip supplier and largest cloud rivals together as investors, OpenAI is securing its operational future while diplomatically managing the competitive landscape. It's a masterclass in strategic financing."
Eleanor Vance, Software Engineer & AI Ethics Advocate: "It's alarming. This concentration of power and capital between a handful of trillion-dollar companies and the leading AI lab creates a monolithic entity with unprecedented control over a critical technology. Regulatory bodies seem to be asleep at the wheel while this new techno-oligarchy forms."
David Park, CFO of a SaaS Startup: "The numbers are mind-boggling, but they reflect the new reality. The cost of entry to compete at the frontier of AI is now measured in tens of billions. This round effectively raises the moat around OpenAI to an insurmountable level for virtually any other player."
Professor Linda Greer, Business School Dean: "The involvement of Amazon and Microsoft, direct competitors in the cloud space, investing alongside Nvidia is particularly telling. It suggests a recognition that ensuring OpenAI's stability and access to resources is, at this point, more strategically important than intra-cloud competition."