Amazon, Nvidia, and Microsoft Are Betting Big on OpenAI’s $850B Valuation

TLDR

• OpenAI is close to finalizing a funding round set to raise over $100 billion
• The raise could value OpenAI at more than $850 billion
• Amazon, SoftBank, Nvidia, and Microsoft are among the lead investors
• OpenAI expects to keep losing money until at least 2029
• An IPO could happen as early as late 2026

OpenAI is nearing the first close of a new funding round expected to raise more than $100 billion, Bloomberg reported Thursday.

The round could value the ChatGPT maker at more than $850 billion. Before the new money is added, OpenAI’s pre-funding valuation sits at around $730 billion.

The first phase of the round is expected to wrap up by the end of February. Investor allocations are still being confirmed.

Strategic investors are leading this first phase. Amazon, SoftBank, Nvidia, and Microsoft are among those expected to participate. If these firms invest near the top of the discussed range, their combined commitments could approach $100 billion alone.

A second phase will follow, open to venture capital firms, sovereign wealth funds, and other large investors. Some sources say this could push the total raised even higher.

Why OpenAI Needs the Money

OpenAI is the world’s most valuable startup, but it is still losing money. The company is expected to stay in the red until at least 2029.

The losses come from the enormous cost of training and running advanced AI models. These systems require vast computing power, high-end chips, and large data centers — all expensive to build and maintain.

OpenAI has outlined plans to spend trillions on AI infrastructure over the next decade. The new funding gives the company more room to pursue those plans without slowing down development.

Revenue is projected to grow sharply in coming years, but spending continues to outpace it for now.

Is an IPO Coming?

OpenAI could move toward an initial public offering as early as the end of 2026. This timeline has appeared in several recent reports.

The potential IPO comes as competition with Anthropic heats up. Both companies are pushing to develop more powerful AI systems and attract the same pool of enterprise customers.

Microsoft, Nvidia, and Amazon are all existing OpenAI partners. Their involvement in this round strengthens those ties further.

The first close of the round is expected before the end of this month. Details on the second phase, including timing and participants, have not been officially confirmed.

OpenAI has not made a public statement on the funding round figures reported by Bloomberg.

The post Amazon, Nvidia, and Microsoft Are Betting Big on OpenAI’s $850B Valuation appeared first on Blockonomi.