OpenAI, the organization responsible for ChatGPT, is in the process of securing $110 billion in a significant funding round, which would result in the company being valued at $840 billion, as per a recent report from Reuters. This funding round includes contributions of $50 billion from Amazon, $30 billion from SoftBank, and an additional $30 billion from Nvidia. The funding is being secured in preparation for OpenAI’s upcoming initial public offering (IPO) that is expected to take place later this year.
Amazon has agreed to initially invest $15 billion, with an additional $35 billion to be provided once specific conditions are met. As part of the agreement, OpenAI will utilize 2 gigawatts of computing capacity that will be powered by Amazon’s proprietary Trainium chips. Furthermore, Amazon Web Services (AWS) is set to become the exclusive third-party cloud services provider for OpenAI Frontier, the company’s platform tailored for constructing and overseeing AI agents, according to details shared in the Reuters report.
It is important to note that this collaboration with Amazon does not impact OpenAI’s existing partnership with Microsoft. Microsoft’s Azure platform will continue to serve as the sole cloud services provider for OpenAI’s application programming interfaces, which enable developers to access its models. OpenAI’s in-house products will remain hosted on Azure, and Microsoft will retain exclusive licensing rights and access to the intellectual property associated with OpenAI’s models and products, as outlined in the Reuters report.