Amazon, Microsoft, Nvidia Eye $60B OpenAI Investment Ahead of IPO

The reported talks represent a significant consolidation of power and capital within the artificial intelligence sector. According to the reports, Amazon is considering an investment of up to $50 billion, which would instantly make it one of OpenAI’s largest backers. Microsoft, which already holds a substantial $13 billion stake in the company, and chipmaker Nvidia are also reportedly in discussions to participate. Collectively, the three tech behemoths are considering commitments totaling as much as $60 billion. This potential investment round underscores a pivotal shift: OpenAI’s largest suppliers—providing cloud infrastructure via Amazon Web Services and Microsoft Azure, and critical hardware from Nvidia—are poised to become its most significant financial supporters.

For Amazon, a deal would dramatically deepen its relationship with OpenAI beyond a major existing commercial agreement. In November, OpenAI committed to purchasing $38 billion in computing services from Amazon Web Services over multiple years, even as it maintained its foundational partnership with Microsoft. This dual-cloud strategy highlights OpenAI’s need for immense scale and redundancy. An equity investment from Amazon would intertwine their fates further, creating a complex web of alliances in the AI arms race. Notably, Amazon has also invested billions in rival AI developer Anthropic, including $4 billion in 2024, illustrating a multi-pronged strategy to secure influence across the leading frontier of AI development.

The primary driver behind this historic fundraising push is the astronomical cost of developing and operating advanced artificial intelligence models. The reports indicate OpenAI seeks funding to cover the growing expenses of training and running its AI systems. CEO Sam Altman has been vocal about the capital requirements, stating the company needs “lots of capital” and will “cross shareholder limits at some point.” This need places the company in a near-constant fundraising mode, despite rising revenue from products like ChatGPT and its API services.

The scale of OpenAI’s ambition is unprecedented in the tech industry. The company has signaled plans to spend hundreds of billions of dollars over time on computing infrastructure. This includes building and operating vast data centers and securing access to specialized AI chips, a market where Nvidia currently holds a dominant position. The potential $100 billion total capital raise highlights the existential financial demands of remaining at the forefront of generative AI. Analysts cited in the reports deliver a stark warning: unless its financial situation changes, OpenAI could run out of money by 2027, adding urgency to these investment discussions and the parallel push toward a public listing.

Parallel to the private fundraising talks, OpenAI has begun laying the groundwork for an initial public offering later this year, according to The Wall Street Journal. The company is reportedly holding early discussions with banks and venture capital firms, including SoftBank, and is expanding its internal finance team. A public offering would provide a massive influx of capital and offer a transparent mechanism to address investor concerns about how OpenAI plans to finance its long-term infrastructure ambitions.

However, CEO Sam Altman has expressed profoundly mixed feelings about taking the company public. In a December interview on the Alex Kantrowitz podcast, Altman hinted at the potential but noted “a bunch of things at play.” He stated, “Am I excited to be a public company CEO? Zero percent,” adding, “Am I excited for OpenAI to be a public company? In some ways, I am, and in some ways, I think it’ll be really annoying.” This ambivalence reflects the tension between the necessity of accessing public markets for survival-scale funding and the desire to avoid the short-term pressures and scrutiny that come with being a publicly traded entity.

Whether the current talks with Amazon, Microsoft, and Nvidia result in finalized commitments remains unclear, as all companies have declined or not responded to requests for comment from outlets like Decrypt. The outcome will significantly shape the AI competitive landscape. A successful mega-round would not only secure OpenAI’s runway but also formalize a powerful consortium of its most critical partners, setting the stage for the next phase of the industry’s evolution as the company marches toward a potential IPO in the fourth quarter.