Tech Giants Circle OpenAI in Funding Round That Could Top $100 Billion
Amazon, Microsoft, and Nvidia are in discussions to invest in OpenAI as it prepares for a possible IPO later in 2024. Collectively, the companies may contribute up to $60 billion, with Amazon’s individual investment potentially reaching $50 billion. OpenAI is seeking to raise as much as $100 billion to fund the escalating costs of scaling its AI infrastructure, including data centers and specialized chips. The company has already committed to spend $38 billion on Amazon Web Services while maintaining a significant relationship with Microsoft, which currently holds a $13 billion stake in OpenAI. Amazon is also an investor in rival AI developer Anthropic. OpenAI’s continuous fundraising reflects its need for massive capital as it expands, with leadership acknowledging that a public listing may be necessary to meet these demands. Early IPO preparations are underway, including talks with banks and investment firms. Analysts warn that OpenAI could exhaust its financial resources by 2027 if additional funding is not secured.
