OpenAI is nearing the close of a landmark funding round expected to exceed $100 billion, which would set a new record for startup financing. Bloomberg reports that the deal could push OpenAI’s total valuation beyond $850 billion, up from an earlier estimate of $830 billion. The company’s pre-money valuation stands at $730 billion.
The first phase of the round will draw primarily from strategic corporate investors. Amazon is expected to contribute up to $50 billion, SoftBank up to $30 billion, and Nvidia up to $20 billion. Microsoft is also among the strategic investors. These commitments are expected to be finalized by the end of February.
As part of its expanded partnership with Amazon, OpenAI will increase its use of Amazon’s chips and cloud computing infrastructure. SoftBank currently holds roughly an 11% stake in OpenAI. Its shares rose as much as 4% following the news.
A second phase of fundraising will follow, targeting venture capital firms, sovereign wealth funds, and other financial investors. This phase could push the total amount raised significantly higher. Corporate contributions are expected to arrive in several installments throughout the year.
Bloomberg notes that the deal is not yet finalized and details remain subject to change. Representatives for OpenAI and the investors either declined to comment or did not respond.
