Artificial intelligence company OpenAI announced a major funding round worth $110 billion. The investment would value the ChatGPT developer at about $840 billion.
The deal shows the fast pace of global investment in artificial intelligence. Large technology companies and investors are competing to work closely with OpenAI.
Several major firms have joined the funding round. These include Amazon, Nvidia, and SoftBank. Their participation highlights the growing importance of AI in the technology sector.
Amazon plans to make a large investment in OpenAI. The company will initially invest $15 billion. Another $35 billion could follow if certain conditions are met.
The partnership also includes a technology agreement between the two companies. Under the deal, OpenAI will use two gigawatts of computing capacity powered by Amazon’s Trainium chips.
These chips are designed to support advanced artificial intelligence workloads. The additional computing power will help OpenAI train and run large AI models.
Amazon Web Services will also play a key role in the partnership. AWS will become the exclusive third-party cloud provider for OpenAI Frontier.
OpenAI Frontier is the company’s enterprise platform for building and managing AI agents. Businesses use the platform to deploy and operate advanced AI systems.
Despite the new partnership, OpenAI’s relationship with Microsoft will continue. Microsoft Azure will remain the exclusive cloud provider for OpenAI’s application programming interfaces.
These APIs allow developers and companies to access OpenAI’s AI models. Many organizations rely on these tools to build AI-powered applications.
OpenAI’s own products will also continue to run on Microsoft Azure. Microsoft holds exclusive licensing and intellectual property access for OpenAI models and technologies.
Nvidia is another major investor in the funding round. Reports indicate that the company may invest around $30 billion in the project.
However, it remains unclear whether this replaces Nvidia’s earlier commitment. In September, the chipmaker had indicated it might invest up to $100 billion in the AI company.
Neither OpenAI nor Nvidia immediately responded to requests for clarification about the details.
Industry analysts say the large funding round shows how competitive the AI sector has become. Companies want strong partnerships to gain an advantage in developing future technologies.
OpenAI is investing heavily in new data centers and advanced computing infrastructure. These facilities are required to train powerful artificial intelligence systems.
In other news read more about: OpenAI Hires Former Apple Models Team Leader and Meta AI Researcher
The company’s growing partnerships with major tech firms could strengthen its position in the global AI market. Experts believe such investments will accelerate the development of next-generation AI tools.
