OpenAI closes record $122 billion funding round at $852 billion post-money valuation; SoftBank deploys second $10B tranche from $40B loan as round completes with a16z and D.E. Shaw
OpenAI closes record $122 billion funding round at $852 billion post-money valuation; SoftBank deploys second $10B tranche from $40B loan as round completes with a16z and D.E. Shaw
In October 2024, OpenAI raised $6.6 billion at a $157 billion valuation. Seventeen months later, on February 27, 2026, the maker of ChatGPT closed a record $110 billion funding round at a $730 billion pre-money valuation ($840 billion post-money)—the largest private capital raise in history. Amazon led with a $50 billion commitment ($15 billion upfront, $35 billion contingent on OpenAI achieving artificial general intelligence or completing an initial public offering by year-end), while Nvidia and SoftBank each committed $30 billion. On April 1, 2026, SoftBank delivered a second $10 billion tranche, expanding the total round to $122 billion at an $852 billion post-money valuation with participation from Andreessen Horowitz and D.E. Shaw Ventures. The deal includes expanded infrastructure partnerships: Amazon will provide $100 billion in additional Amazon Web Services compute services over eight years (on top of the existing $38 billion commitment), while Nvidia will supply 3 gigawatts of dedicated inference capacity and 2 gigawatts of training capacity using its Vera Rubin systems.
In October 2024, OpenAI raised $6.6 billion at a $157 billion valuation. Seventeen months later, on February 27, 2026, the maker of ChatGPT closed a record $110 billion funding round at a $730 billion pre-money valuation ($840 billion post-money)—the largest private capital raise in history. Amazon led with a $50 billion commitment ($15 billion upfront, $35 billion contingent on OpenAI achieving artificial general intelligence or completing an initial public offering by year-end), while Nvidia and SoftBank each committed $30 billion. On April 1, 2026, SoftBank delivered a second $10 billion tranche, expanding the total round to $122 billion at an $852 billion post-money valuation with participation from Andreessen Horowitz and D.E. Shaw Ventures. The deal includes expanded infrastructure partnerships: Amazon will provide $100 billion in additional Amazon Web Services compute services over eight years (on top of the existing $38 billion commitment), while Nvidia will supply 3 gigawatts of dedicated inference capacity and 2 gigawatts of training capacity using its Vera Rubin systems.
The final deal represents a dramatic restructuring of OpenAI's capital relationships. SoftBank deployed its $40 billion bridge loan secured on March 27, 2026, to fund the additional $10 billion stake amid the escalating AI infrastructure race. Nvidia's $30 billion equity stake replaced the stalled $100 billion milestone-linked infrastructure deal announced in September 2025. Amazon's investment ties $35 billion to specific milestones, reflecting investor skepticism about OpenAI's path to profitability. OpenAI generated $13.1 billion in 2025 revenue ($2 billion monthly run-rate) but projects cumulative losses through 2028.
Why it matters
OpenAI's $122B raise at $852B valuation locks in AI supremacy but risks trillion-dollar losses if growth falters.
Key Indicators
$122B
Closed round size
From Nvidia ($30B), SoftBank ($40B), Amazon ($50B), a16z, D.E. Shaw; round now complete
$852B
Post-money valuation
$730B pre-money plus $122B raised
$35B
Amazon contingent commitment
Tied to AGI or IPO by end-2026
$40B
SoftBank loan deployment
Bridge loan funded additional $10B tranche on April 1; total SoftBank commitment now $40B
$13.1B
2025 revenue
$2B monthly run-rate; ~$9B net loss (spent $1.69 per revenue dollar)
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George Orwell
(1903-1950) ·Modernist · satire
Fictional AI pastiche — not real quote.
"They have built a machine to think for mankind, and mankind has responded by pouring into it sums so vast they require new mathematics to express — all to fund a venture that loses nearly two dollars for every dollar earned, sustained by the collective faith that intelligence, once artificial, will prove more profitable than the real thing ever was."
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Dorothy Parker
(1893-1967) ·Jazz Age · wit
Fictional AI pastiche — not real quote.
"They've built a machine that loses money faster than it can think, and called it intelligence."
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SoftBank Delivers Second $10B Tranche; Round Completes at $122B
Funding
SoftBank's second $10 billion tranche from its $40B loan commitment arrived, finalizing the round at $122 billion total with Andreessen Horowitz and D.E. Shaw Ventures participating. Post-money valuation reached $852 billion. OpenAI reports $2B monthly revenue.
SoftBank Secures $40B Loan for Further OpenAI Investment
Funding
SoftBank Group arranged a $40 billion bridge loan facility maturing March 2027, led by JPMorgan, Goldman Sachs, and Japanese banks, explicitly to fund additional investments in OpenAI as the funding round remains open.
OpenAI Closes Record $110B Funding Round
Funding
OpenAI officially closes $110 billion funding round at $730 billion pre-money valuation ($840 billion post-money). Amazon commits $50B ($15B upfront, $35B contingent on AGI or IPO by year-end), Nvidia and SoftBank each commit $30B. Round remains open for additional investors.
OpenAI Expands AWS Partnership by $100B
Partnership
As part of Amazon investment, OpenAI commits to consuming at least 2GW of AWS Trainium compute and will develop stateful runtime environments on Amazon Bedrock platform. Expands previous $38B AWS deal by $100B over eight years.
Nvidia Commits to 5GW of Capacity for OpenAI
Partnership
Nvidia will provide 3 gigawatts of dedicated inference capacity and 2 gigawatts of training capacity using Vera Rubin systems as part of its $30 billion equity investment.
Nvidia Reaches Terms on $30B Equity Investment
Funding
Nvidia neared final terms on a $30 billion direct equity stake in OpenAI at a $730 billion pre-money valuation, replacing the stalled $100 billion milestone-linked deal.
Full $100B+ Round Takes Shape
Funding
Reports indicated OpenAI was finalizing a round exceeding $100 billion at a valuation above $850 billion, with Nvidia, SoftBank, and Amazon as anchor investors.
Amazon-OpenAI Talks Expand to Include Alexa
Partnership
Reports indicated OpenAI models could help power Amazon's Alexa voice assistant as part of the broader investment discussions.
Reports Surface That $100B Deal Is 'On Ice'
Report
Media reports indicated negotiations had stalled, with some inside Nvidia expressing doubts about OpenAI's business model. Both chief executives publicly denied tension.
Nvidia CFO Confirms Deal Still Not 'Definitive'
Disclosure
Nvidia's chief financial officer Colette Kress acknowledged the $100 billion OpenAI deal remained unsigned, more than two months after it helped fuel an AI stock rally.
Nvidia Files 'No Assurance' Warning
Disclosure
Nvidia disclosed in a quarterly filing that there was "no assurance" it would finalize the $100 billion OpenAI deal, signaling internal doubts about the transaction's structure.
Amazon Signs $38B Cloud Deal with OpenAI
Partnership
OpenAI committed to spending $38 billion on Amazon Web Services over seven years for access to Nvidia GPUs and cloud infrastructure.
OpenAI Completes For-Profit Restructuring
Corporate
OpenAI reorganized into a public benefit corporation, with the nonprofit OpenAI Foundation retaining 26% ownership and Microsoft receiving a 27% stake.
Nvidia Signs $100B Infrastructure Letter of Intent
Partnership
Nvidia and OpenAI announced a non-binding agreement under which Nvidia would invest up to $100 billion as OpenAI deployed 10 gigawatts of Nvidia-powered data center capacity.
SoftBank Leads $40B Round at $300B Valuation
Funding
OpenAI raised $40 billion in what was then the largest private technology deal in history, with SoftBank as lead investor. Microsoft, Coatue, Altimeter, and Thrive also participated.
Stargate Project Announced at the White House
Partnership
President Trump, alongside Altman, Son, and Oracle's Larry Ellison, unveiled a $500 billion AI data center joint venture called Stargate, with SoftBank as chairman.
OpenAI Raises $6.6B at $157B Valuation
Funding
OpenAI closed a funding round with Microsoft, Nvidia, SoftBank, and others. The investment carried a condition: the company must convert to a for-profit structure or the funds would become debt.
Scenarios
1
Round Closes Above $100B, OpenAI Files for IPO
Discussed by: TechCrunch, Caproasia, and multiple Wall Street analysts tracking OpenAI's trajectory
All three anchor investors—Nvidia, SoftBank, and Amazon—finalize their commitments, bringing the round above $100 billion. The capital injection funds OpenAI's $600 billion compute spending plan through 2030 and positions the company for an initial public offering in late 2026 or 2027 at a valuation approaching $1 trillion. OpenAI's chief financial officer Sarah Friar has told associates the company is targeting a 2027 listing, and the for-profit restructuring completed in October 2025 removed the final structural barrier.
2
Round Shrinks as One or More Investors Pull Back
Discussed by: Business Standard, The Information, and analysts who noted the $100B Nvidia deal's collapse as a precedent
One or more anchor investors reduce their commitments or drop out, shrinking the round significantly. Amazon's talks—which involve OpenAI adopting Amazon's custom Trainium chips—face the same structural complications that stalled the original Nvidia deal. OpenAI still raises tens of billions but at a lower valuation, and the IPO timeline slips as the company's $9 billion annual losses continue to require fresh capital.
3
Circular Funding Draws Regulatory or Investor Scrutiny
Discussed by: TechCrunch, which flagged the 'circular deals' dynamic, and financial analysts questioning the structure
The intertwined nature of these deals—Amazon invests in OpenAI, OpenAI spends $38 billion on Amazon's cloud; Nvidia takes equity, OpenAI buys Nvidia chips—attracts scrutiny from regulators or skeptical institutional investors. Questions about whether the investments represent genuine capital allocation or subsidized customer acquisition could complicate the IPO process or trigger antitrust review, particularly given the Federal Trade Commission's existing interest in AI industry concentration.
4
AI Spending Boom Cools, OpenAI's Losses Force a Reckoning
Discussed by: Medium's Will Lockett, Naked Capitalism, and analysts projecting $143 billion in cumulative negative free cash flow through 2029
If demand for AI products plateaus or a competing open-source model erodes OpenAI's pricing power, the company's path to profitability—which it projects for 2029 or 2030—becomes less credible. Investors who poured in at a $730 billion-plus valuation face significant markdowns. The parallel to SoftBank's Vision Fund era, where massive capital commitments preceded a wave of down rounds and writedowns, becomes harder to dismiss.
Historical Context
SoftBank Vision Fund and WeWork (2017-2019)
2017-2019
What Happened
SoftBank invested approximately $16 billion in WeWork through its Vision Fund and other vehicles, pushing the coworking company's valuation to $47 billion. WeWork's September 2019 initial public offering filing revealed unsustainable losses, and the IPO collapsed. Within weeks, WeWork's implied valuation fell 83% to $8 billion, and SoftBank assembled a $9.5 billion rescue package.
Outcome
Short Term
WeWork abandoned its IPO, ousted its founder-CEO Adam Neumann, and accepted a SoftBank bailout that gave the Japanese conglomerate effective control of the company.
Long Term
The episode became shorthand for the dangers of massive private-market overvaluation. SoftBank's Vision Fund I ultimately recovered much of its losses through other bets, but investor confidence in mega-round private market valuations took years to rebuild.
Why It's Relevant Today
SoftBank is again one of the largest investors in a money-losing private company seeking a valuation in the hundreds of billions. The key difference: OpenAI's revenue is growing rapidly (from $3.7 billion in 2024 to roughly $13 billion in 2025), whereas WeWork never had a credible path to profitability. The key similarity: the sheer scale of capital at risk if growth assumptions prove wrong.
Microsoft's $150 Million Investment in Apple (1997)
August 1997
What Happened
Microsoft invested $150 million in Apple at a time when the computer maker was near bankruptcy. The investment came with agreements for Microsoft to continue developing Office for the Mac and to settle patent disputes. Steve Jobs announced the deal at Macworld to a chorus of boos from Apple loyalists who saw it as capitulation to a rival.
Outcome
Short Term
The investment stabilized Apple financially and signaled market confidence, helping reverse a multiyear stock decline.
Long Term
Apple went on to become the world's most valuable company. Microsoft sold its shares by 2003, missing out on hundreds of billions in gains. The deal demonstrated that a strategic investment by a dominant platform company in a key partner can reshape an entire industry.
Why It's Relevant Today
Nvidia's equity investment in OpenAI mirrors the structural logic: a dominant supplier (Microsoft made the software, Nvidia makes the chips) takes a financial stake in a company that is simultaneously its largest customer and potential competitor. The question is whether Nvidia is buying into a transformative partner or subsidizing a customer whose long-term hardware choices remain uncertain.
AOL-Time Warner Merger (2000)
January 2000 - January 2001
What Happened
At the peak of the dot-com bubble, America Online acquired Time Warner for $164 billion in what was then the largest corporate merger in history. AOL's stock price had inflated its market value to over $200 billion on the promise that internet connectivity would transform media. The deal closed in January 2001.
Outcome
Short Term
The combined company wrote down nearly $99 billion in value within two years as AOL's dial-up business collapsed amid the rise of broadband.
Long Term
The merger became the defining cautionary tale of using inflated valuations to acquire real assets. Time Warner eventually spun off AOL in 2009 at a fraction of the original price.
Why It's Relevant Today
The parallel is not in the deal structure but in the valuation question. OpenAI's $730 billion pre-money valuation is roughly 56 times its 2025 revenue, at a time when the company projects losses through 2028. If artificial intelligence revenue growth follows the trajectory its backers expect, the valuation looks prescient. If growth slows, it risks looking like another case of capital chasing hype at historic scale.
