OpenAI is on the verge of closing a monumental funding round that could inject over $100 billion into the artificial intelligence giant, propelling its valuation to a staggering $850 billion. According to reports surfacing this week, the capital injection is being led by a powerful coalition of strategic partners including Amazon, Nvidia, SoftBank, and Microsoft. This historic financial war chest is primarily earmarked for "Project Stargate," an ambitious infrastructure initiative designed to build the world's most advanced network of AI supercomputers and data centers to accelerate the arrival of Artificial General Intelligence (AGI).
The $850 Billion Valuation: A New Era for AI Economics
The reported deal marks a watershed moment in technology history, potentially making OpenAI the most valuable private company in the world. Sources close to the negotiations indicate that the pre-money valuation stands at approximately $730 billion, with the fresh capital pushing the post-money figure past the $850 billion mark. This valuation defies traditional market logic, reflecting the immense potential investors see in OpenAI's transition from a software developer to a global infrastructure powerhouse.
The funding structure is reportedly being finalized in phases, with the first tranche expected to close by the end of February 2026. Unlike typical venture capital rounds, this raise is dominated by "sovereign-scale" corporate investments. Amazon is rumored to be considering a contribution of up to $50 billion, potentially deepening its cloud dominance, while SoftBank could commit as much as $30 billion, solidifying Masayoshi Son's aggressive bet on the AI revolution. Nvidia, the chipmaker powering the boom, is also in talks to invest around $20 billion, ensuring its hardware remains the backbone of OpenAI's future systems.
Project Stargate: Building the Physical Layer of AGI
The primary driver behind this unprecedented capital raise is Project Stargate, a colossal infrastructure plan that aims to sever the constraints of current computing power. No longer content with renting capacity, OpenAI is building its own physical empire. The project envisions a distributed network of AI supercomputers across the United States, with flagship sites already under development in Abilene, Texas, and undisclosed locations in the Midwest.
Stargate is not just a data center; it is an energy-intensive industrial project of a scale rarely seen in the tech sector. The initiative targets a power capacity of 10 gigawatts—enough to power millions of homes. This massive energy footprint is necessary to run millions of next-generation AI chips, including Nvidia's Blackwell GB200s, which will train models exponentially more powerful than GPT-5. The project underscores a critical shift in strategy: to achieve AGI, software innovation must now be matched by brute-force industrial engineering.
The Strategic Alliance: Amazon, Nvidia, and SoftBank
The involvement of Amazon and SoftBank highlights the shifting alliances in Silicon Valley. For Amazon, this investment likely secures a long-term customer for its AWS cloud infrastructure and future chip designs, potentially diversifying OpenAI's reliance on Microsoft's Azure. SoftBank's participation, driven by its "Vision Fund" strategy, connects OpenAI to a broader global network of energy and robotics ventures, aligning with Sam Altman's vision of AI that interacts with the physical world.
The Race for Compute Sovereignty
This funding round effectively triggers an "arms race" for compute sovereignty. By securing $100 billion, OpenAI is building a defensive moat made of silicon and electricity that competitors will find nearly impossible to cross. The cost of entry for frontier model training is skyrocketing, and "Stargate" signals that the future of AI belongs to those who control the physical infrastructure.
Critics and regulators are likely to scrutinize this concentration of power. With Microsoft, Amazon, and Nvidia all deeply entwined financially with the market leader, the lines between competition and cartel-like cooperation are blurring. However, for now, the focus remains on speed. As the first phase of funding nears completion, the tech world watches with bated breath to see if this $100 billion gamble will finally unlock the door to human-level artificial intelligence.
