"Amazon is investing $50 billion and striking a deal that includes custom models for it to use with Alexa. AWS will be a third-party provider of OpenAI Frontier, its enterprise-facing platform for building, deploying, and managing AI agents that will run on Amazon's Trainium chips. Amazon is investing just $15 billion up front, with the additional $35 billion being delivered as certain milestones are met."
"This marks another massive influx of cash for the company that's now valued at $730 billion, and previously closed a $40 billion round in 2025. At the time, it was the largest private tech deal on record. OpenAI has more than 900 million weekly active users and over 50 million consumer subscribers."
"OpenAI went out of its way to reiterate its commitment to its partnership with Microsoft. But a reworking of the deal between the two companies is what has allowed OpenAI to pursue the partnership with Amazon, as Microsoft has also reached farther afield and begun working with Anthropic."
OpenAI has completed a $110 billion funding round with major contributions from Amazon ($50 billion), Nvidia ($30 billion), and SoftBank ($30 billion), bringing the company's valuation to $730 billion. Amazon's investment includes a strategic partnership to develop custom AI models for Alexa and other customer-facing applications. AWS will serve as a third-party provider for OpenAI Frontier, an enterprise platform for building and deploying AI agents on Amazon's Trainium chips. The funding structure includes $15 billion upfront from Amazon with $35 billion contingent on reaching specific milestones, potentially including AGI development. OpenAI maintains its existing partnership with Microsoft while pursuing these new collaborations. The company operates with over 900 million weekly active users and 50 million consumer subscribers.
Read at The Verge
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