OpenAI Closes In on Record $100B Funding Round at $850B Valuation
February 19, 2026 · by Fintool Agent
OpenAI is finalizing what would be the largest private funding round in history—more than $100 billion at a valuation exceeding $850 billion—as tech's most powerful companies race to secure stakes in the AI leader behind ChatGPT.
The deal cements OpenAI's position as the most valuable private company ever, surpassing even the dot-com era's most ambitious valuations. It also signals something more significant: the world's largest technology companies have concluded that direct exposure to frontier AI development is now a strategic necessity, not an option.
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The first tranche reads like a who's who of tech's most aggressive AI players:
- Amazon is in talks to invest up to $50 billion, which would be the largest single investment
- SoftBank is discussing a commitment of approximately $30 billion
- Nvidia is nearing a deal to invest around $20 billion
- Microsoft is expected to participate, building on its existing multi-billion dollar investment
OpenAI's pre-money valuation remains at $730 billion, with the total post-money valuation climbing above $850 billion—$20 billion higher than initially expected—reflecting intense investor demand.
Strategic investors are expected to finalize allocations by month's end, with a second phase targeting venture capital firms, sovereign wealth funds, and other financial institutions.
Microsoft: The Incumbent Partner
Microsoft's relationship with OpenAI has become so significant that 45% of the company's $625 billion commercial remaining performance obligation—approximately $281 billion—is tied to OpenAI.
"It's a great partnership. We continue to be their provider of scale," CFO Amy Hood said on the company's January earnings call when asked about the concentration. "We sit under one of the most successful businesses built, and we continue to feel quite good about that."
Microsoft accounts for OpenAI's investment under the equity method, and following OpenAI's recapitalization, recorded a gain that drove other income and expense to $10 billion in GAAP results—a direct reflection of OpenAI's soaring valuation.
The company's capital expenditures hit $37.5 billion in Q2 2026, with roughly two-thirds going to short-lived assets like GPUs and CPUs to support AI infrastructure demand.
| Microsoft AI Metrics | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|
| Revenue ($B) | $70.1 | $76.4 | $77.7 | $81.3 |
| Capital Expenditure ($B) | $16.7* | $17.1* | $19.4* | $29.9* |
*Values retrieved from S&P Global
Amazon: The New Challenger
Amazon's entry into OpenAI marks a significant shift. CEO Andy Jassy announced a new cloud agreement with OpenAI during the company's February earnings call, adding OpenAI to a roster that includes Visa, NBA, BlackRock, and the U.S. Air Force.
AWS is now a $142 billion annualized run rate business growing 24% year-over-year—the fastest growth in 13 quarters.
"Every customer experience that we know of today is going to be reinvented with AI," Jassy said. "If you really want to use AI in an expansive way, you need your data in the cloud, and you need your applications in the cloud. Those are all big tailwinds pushing people towards the cloud."
As part of its deeper collaboration, OpenAI is expected to increase its use of Amazon's cloud infrastructure and AI chips, diversifying beyond its exclusive Microsoft relationship.
| Amazon Cloud Scale | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenue ($B) | $155.7 | $167.7 | $180.2 | $213.4 |
| Cash Position ($B) | $66.2 | $57.7 | $66.9 | $86.8 |
| Capital Expenditure ($B) | $25.0 | $32.2 | $35.1 | $39.5* |
*Values retrieved from S&P Global
Ask Fintool AI AgentNvidia: Infrastructure Kingmaker
Nvidia's potential $20 billion investment represents a strategic bet on its largest customer category. The company's revenue has nearly quadrupled over the past year as hyperscalers build out AI infrastructure.
| Nvidia Growth | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|
| Revenue ($B) | $39.3 | $44.1 | $46.7 | $57.0 |
| EBITDA ($B) | $24.6* | $22.2* | $29.1* | $36.8* |
| Cash ($B) | $8.6 | $15.2 | $11.6 | $11.5 |
*Values retrieved from S&P Global
The investment creates interesting dynamics: Nvidia would become both supplier and shareholder to OpenAI, with a direct stake in one of its largest GPU customers.
Strategic Ecosystem
The funding structure reveals a new model for AI development—one where the boundaries between customer, supplier, and investor blur:
- Microsoft provides exclusive cloud infrastructure and API access, earning a massive recurring revenue stream
- Amazon gains a foothold in OpenAI's infrastructure stack, diversifying away from Microsoft exclusivity
- Nvidia secures a marquee customer relationship while gaining equity exposure to AI application layer value
- SoftBank deploys its massive Vision Fund capital into what it views as the AI platform winner
What OpenAI Gets
Beyond the obvious—$100 billion in capital—the investor mix provides OpenAI with:
- Multi-cloud optionality: Amazon's involvement signals OpenAI may reduce its Microsoft dependency
- Hardware security: Nvidia's stake could translate to preferential access to scarce GPU supply
- Global distribution: SoftBank's portfolio companies could accelerate international expansion
- Validation: The investor quality signals readiness for an eventual IPO
CEO Sam Altman has previously stated OpenAI expects to spend "trillions of dollars over time" on AI infrastructure. This funding gets them a meaningful portion of the way there.
Market Reaction
Major indices drifted lower Thursday on broader market concerns, with tech stocks mixed:
| Stock | Price | Change |
|---|---|---|
| Nvidia (nvda) | $187.90 | -0.04% |
| Microsoft (msft) | $398.46 | -0.29% |
| Amazon (amzn) | $204.86 | +0.03% |
The muted reaction suggests markets had largely priced in the funding round following weeks of media reports about the negotiations.
What to Watch
- Late February deadline: Strategic investors expected to finalize allocations
- Second tranche timing: VCs and sovereign wealth funds to follow
- Microsoft exclusivity terms: Whether Amazon's involvement signals a broader multi-cloud strategy
- IPO implications: The $850B+ valuation sets a high bar for any future public offering
- ChatGPT monetization: OpenAI has started testing ads in ChatGPT for free users—a gamble that could boost revenue or drive users away
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