OpenAI Nears $100B Funding Round Close

OpenAI is on the verge of closing the first phase of a massive funding round expected to exceed $100 billion, a deal that would value the artificial intelligence company at more than $850 billion, according to sources familiar with the discussions.

The funding, which marks the largest single raise by a private tech company, comes as OpenAI pushes to expand its AI infrastructure amid soaring operational costs. The pre-money valuation stands at $730 billion, with the new capital set to push the overall figure higher than an initially anticipated $830 billion. Strategic investors are leading the initial tranche, including Amazon, which is in talks to contribute up to $50 billion; SoftBank, preparing to invest around $30 billion; Nvidia, eyeing about $20 billion; and Microsoft, OpenAI's longtime partner. These commitments could approach $100 billion on their own if finalized at the upper end of the ranges. The first close is slated for the end of February, with funds arriving in installments throughout the year.

A second phase would open the round to venture capital firms, sovereign wealth funds, and other institutional investors, potentially increasing the total amount raised even...