OpenAI is close to finalizing the first phase of a funding round that could bring in more than $100 billion, according to people familiar with the matter. If completed at the discussed levels, the deal could push the company’s overall valuation beyond $850 billion, with a pre money valuation of $730 billion.
For context, this would be one of the largest private capital raises ever. It signals how central artificial intelligence has become to the future of technology, infrastructure, and corporate strategy.
Here is what we know so far.
Who is backing the first phase
The initial capital is expected to come largely from strategic investors:
• Amazon
• SoftBank Group
• Nvidia
• Microsoft
Reports suggest Amazon may invest up to $50 billion, SoftBank up to $30 billion, and Nvidia around $20 billion. The capital is expected to be deployed in tranches over the course of the year.
SoftBank shares reportedly rose as much as 4 percent in Tokyo following the news, reflecting how closely investors are tracking exposure to AI leaders.
A second phase is expected to include venture capital firms, sovereign wealth funds, and other financial investors. That could push the total raise even higher.
The Bull Case: AI as Core Infrastructure
There is a clear argument that this funding round reflects structural change, not hype.
AI is becoming foundational
Artificial intelligence is no longer a side experiment. It is increasingly embedded in cloud platforms, enterprise software, defense systems, and consumer applications. If AI becomes as foundational as electricity or the internet, then massive upfront infrastructure investment is rational.
Strategic alignment matters
This is not just financial capital. The involvement of Amazon, Microsoft, and Nvidia ties OpenAI deeper into cloud, chips, and enterprise ecosystems. For example, OpenAI is expected to expand its use of Amazon’s chips and cloud services as part of their partnership.
That creates vertical integration across compute, distribution, and application layers.
Scale advantages compound
Large language models require enormous compute power and data infrastructure. The bigger the balance sheet, the harder it becomes for competitors to catch up. If OpenAI can deploy this capital efficiently, it strengthens its moat in training, inference, and global rollout.
From this angle, the valuation reflects future infrastructure dominance rather than current earnings.
The Bear Case: Valuation Versus Fundamentals
On the other hand, the scale of the raise raises legitimate questions.
$850 billion implies massive expectations
Even at a pre money valuation of $730 billion, investors are pricing in extraordinary future revenue growth. To justify such numbers, OpenAI would need to scale enterprise adoption, consumer monetization, and infrastructure partnerships at an unprecedented pace.
Capital intensity cuts both ways
AI infrastructure is expensive. Data centers, chips, energy contracts, and talent all require sustained spending. If returns lag capital deployment, margins could come under pressure.
Concentration risk
A funding round dominated by strategic giants means alignment, but it also means dependence. Cloud relationships, chip supply, and distribution partnerships create powerful synergies, yet they can also limit flexibility.
Bigger Picture
Whether you see this as visionary or overheated depends on how you think about AI’s long term role.
If AI becomes the operating layer for every industry, this capital raise may look obvious in hindsight.
If adoption slows or competition intensifies, valuations at these levels will face scrutiny.
One thing is clear. The AI race is no longer about startups experimenting in garages. It is about trillion dollar infrastructure bets backed by some of the world’s largest technology companies.
The next few years will determine whether this funding round marks the beginning of a new era or the peak of an AI capital cycle.