OpenAI has secured $110 billion in cornerstone commitments for what is projected to be the largest capital raise in history. Major investments include $50 billion from Amazon to enhance its AWS cloud services, $30 billion from Nvidia for chip purchases, and $30 billion from SoftBank, a key shareholder. This funding follows a $41 billion round in March, elevating OpenAI’s pre-money valuation to $730 billion, nearly tripling its worth in a year. Despite rapid growth, OpenAI has faced significant losses, totaling $8 billion last year, with forecasts predicting over $200 billion in losses in the next four years. While competitors like Alphabet and Meta profit from established businesses, OpenAI’s revenue was only $12.5 billion last year. OpenAI aims to scale its computing power from 1.9GW to 36GW within eight years, necessitating over $600 billion in investments. The strategic partnerships with Amazon and SoftBank aim to leverage AI advancements for global benefit.
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