Funding

OpenAI Nears $100 Billion Funding Round With Valuation Topping $850 Billion

Bloomberg reports OpenAI is finalizing its record-breaking raise, backed by Amazon, SoftBank, and Nvidia.

Liza Chan
Liza ChanAI & Emerging Tech Correspondent
February 19, 20264 min read
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Abstract visualization of capital flowing into a central node, representing massive AI investment with interconnected corporate logos in the background

OpenAI is close to finalizing the first phase of a funding round that will bring in more than $100 billion, according to a Bloomberg report published Thursday. The deal would value the ChatGPT maker at over $850 billion, up from the $830 billion figure that had been circulating since December. The company's pre-money valuation sits at $730 billion.

Less than a year ago, OpenAI closed a $40 billion round at a $300 billion valuation. Now it wants nearly triple that. The speed of the markup should raise eyebrows, even by AI industry standards.

Where the money comes from

The first tranche is expected to come primarily from strategic investors: Amazon, SoftBank, and Nvidia. Amazon is in talks to contribute up to $50 billion, which would make it the single largest backer in the round, according to CNBC reporting from late January. That's a remarkable figure from a company that has already poured roughly $8 billion into OpenAI rival Anthropic.

SoftBank, which just finished wiring its $41 billion commitment from the previous round in late December, is reportedly in for another $30 billion. Nvidia has discussed putting in $20 billion, though a Wall Street Journal report noted that an earlier $100 billion infrastructure partnership between Nvidia and OpenAI had stalled after internal doubts at the chipmaker. Jensen Huang pushed back on that characterization in Taipei, calling it "nonsense," but also made clear Nvidia's contribution wouldn't approach $100 billion.

A second phase of the deal, involving venture capital firms, sovereign wealth funds, and other financial investors, is expected to close later and could push the total considerably higher.

The circular financing problem

There's something uncomfortable about this roster of investors. Amazon sells cloud computing to OpenAI. Nvidia sells chips to OpenAI. Both companies stand to recoup portions of their investment through procurement contracts, a dynamic critics have labeled "circular financing" for months now. The Bloomberg report confirms that as part of its partnership with Amazon, OpenAI is expected to expand its use of Amazon's chips and cloud services.

"I believe in OpenAI. The work that they do is incredible," Huang said in Taipei. He described Nvidia's upcoming contribution as "huge" and called it "such a good investment." Coming from OpenAI's primary GPU supplier, that enthusiasm doubles as a sales forecast.

Investors.com's coverage of the round noted that Oracle and CoreWeave, both tied to OpenAI's infrastructure ecosystem, have already seen their market values dip as concerns about circular AI investment grow.

Does the math work?

OpenAI's CFO Sarah Friar said in a January blog post that annualized revenue topped $20 billion in 2025, up from $6 billion in 2024. That's serious growth. But $20 billion in ARR against an $850 billion valuation puts the company at roughly 42x revenue, and that's the annualized figure, not actual collected revenue for the year.

HSBC has estimated OpenAI will face a $207 billion funding gap by 2030, even if revenue projections hold. The company has inked over $1.4 trillion in infrastructure commitments across deals with Oracle, Microsoft, AMD, Amazon, and others. When investor Brad Gerstner asked Sam Altman last November how a company with $13 billion in revenues could make $1.4 trillion in spend commitments, Altman's response was blunt: "If you want to sell your shares, I'll find you a buyer."

Rob Siegel, a lecturer at Stanford Graduate School of Business, put it more diplomatically in comments to the San Francisco Examiner: the numbers only make sense "if you believe that AI is going to fundamentally transform the country, our society and our globe." That's either a reasonable bet or the definition of a bubble, depending on your priors.

What comes next

Corporate investor contributions are expected in tranches throughout 2026. OpenAI is also reportedly preparing for an IPO, potentially in Q4 2026, that Reuters has said could target a $1 trillion valuation. The term sheet with Amazon could be signed in coming weeks.

Tags:OpenAIAI fundingventure capitalAmazonSoftBankNvidiaAI valuationSam Altmanartificial intelligence
Liza Chan

Liza Chan

AI & Emerging Tech Correspondent

Liza covers the rapidly evolving world of artificial intelligence, from breakthroughs in research labs to real-world applications reshaping industries. With a background in computer science and journalism, she translates complex technical developments into accessible insights for curious readers.

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OpenAI Nears $100B Funding Round, Valuation Tops $850B | aiHola