Key Moments
- Amazon committed $50 billion to OpenAI, with $15 billion upfront and an additional $35 billion scheduled over the coming months.
- OpenAI is raising $110 billion in total new funding at a pre-money valuation of $730 billion, including $30 billion each from SoftBank and Nvidia.
- AWS will serve as the exclusive third-party cloud provider for OpenAI Frontier, with OpenAI set to use 2 gigawatts of capacity on Amazon’s Trainium chips.
Major Capital Commitments to OpenAI
Amazon will inject $50 billion into OpenAI, beginning with an initial tranche of $15 billion and a planned follow-on investment of $35 billion in the coming months, according to a joint statement from the companies on Friday.
This capital is a central component of OpenAI’s new $110 billion funding round, which is being raised at a pre-money valuation of $730 billion. Alongside Amazon’s participation, the round includes $30 billion from SoftBank and $30 billion from Nvidia.
Breakdown of the Funding Round
| Investor | Committed Amount | Details |
|---|---|---|
| Amazon | $50 billion | $15 billion initial investment, followed by $35 billion in the coming months |
| SoftBank | $30 billion | Part of the $110 billion funding round |
| Nvidia | $30 billion | Part of the $110 billion funding round |
| Total New Funding | $110 billion | Raised at a pre-money valuation of $730 billion |
AWS to Power OpenAI Frontier
As part of the expanded relationship, Amazon Web Services (AWS) will become the exclusive third-party cloud provider for OpenAI Frontier, described as the enterprise platform used by the ChatGPT developer to build, deploy, and manage AI agents.
To support OpenAI’s computing requirements, the companies said that OpenAI will utilize 2 gigawatts of capacity driven by Amazon’s in-house Trainium chips. This large-scale capacity commitment is intended to underpin the infrastructure needs associated with OpenAI’s advanced AI workloads.
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