Quick Brief
- OpenAI closed a $110B funding round at a $730B pre-money valuation on February 27, 2026, backed by Amazon ($50B), Nvidia ($30B), and SoftBank ($30B)
- Microsoft’s exclusive Azure API license and IP rights remain fully intact under the joint statement published February 26, 2026
- Azure stays the exclusive cloud provider for all stateless OpenAI APIs, including calls routed through third-party partners like Amazon
- India now accounts for 100 million weekly active ChatGPT users, making it OpenAI’s second-largest market after the United States
OpenAI just closed the largest private funding round in technology history, and Microsoft’s position at the center of it remains untouched. The $110 billion raise, backed by Amazon, Nvidia, and SoftBank, triggered immediate questions about whether the seven-year partnership was being diluted. A joint statement published February 26, 2026 answered those questions directly: the core terms are unchanged.
What the $110B Round Actually Includes
Amazon anchored the round with a $50 billion commitment, structured in two tranches: $15 billion deployed immediately, and an additional $35 billion contingent on conditions to be met in the coming months. Nvidia and SoftBank each invested $30 billion, bringing the total to $110 billion against a pre-money valuation of $730 billion. Bloomberg and Reuters place the post-money valuation at $840 billion.
The round remains open, meaning additional investors are expected to join before it formally closes. It is already described as one of the largest private funding rounds in technology history.
Beyond cash, Amazon’s investment is tied to its role as the exclusive third-party cloud provider for Frontier, OpenAI’s enterprise platform, under a separate $38 billion AWS compute agreement signed in November 2025. Nvidia’s $30 billion investment comes with dedicated infrastructure: 3 gigawatts of inference capacity and 2 gigawatts of training compute using Nvidia’s Vera Rubin systems.
Why Microsoft’s Position Remains Exclusive
The joint statement from Microsoft and OpenAI published on February 26, 2026 reaffirmed six core provisions point by point:
- IP rights unchanged: Microsoft holds an exclusive license to OpenAI’s intellectual property across all models and products, extended through 2032 under the October 2025 renegotiation, including models developed after any AGI declaration
- Azure API exclusivity intact: All stateless OpenAI APIs remain hosted exclusively on Azure, regardless of which partner triggers the call
- Revenue share maintained: The existing revenue sharing arrangement continues under the same terms, including revenue generated through third-party cloud partnerships
- First-party products on Azure: OpenAI’s own products remain hosted exclusively on Azure
- AGI definition unchanged: The contractual definition of AGI and the independent expert panel verification process remain in place
- Compute flexibility preserved: OpenAI retains the right to commit compute capacity elsewhere, including through Stargate, without violating partnership terms
The October 2025 Renegotiation: What Actually Changed
The current partnership terms stem from a renegotiated agreement announced October 28, 2025, when OpenAI formally restructured into a public benefit corporation. That agreement directly shapes how the February 2026 funding round should be read.
Microsoft acquired a 27% stake in OpenAI Group PBC, valued at approximately $135 billion at the time of signing. In exchange, Microsoft’s former right of first refusal to be OpenAI’s sole compute provider was formally removed, a provision Reuters describes as having been “a major source of friction as the company’s computing needs soared”. This removal was a deliberate, negotiated decision, not a passive expiry.
Key terms from the October 2025 deal include:
- OpenAI committed to purchasing $250 billion in Azure cloud services from Microsoft through 2032
- Microsoft retains access to OpenAI’s technology, including post-AGI models, until 2032
- Microsoft will relinquish rights to OpenAI’s research once an independent expert panel verifies AGI, or by 2030, whichever comes first
- Microsoft’s revenue-sharing arrangement with OpenAI terminates upon confirmed AGI
- Microsoft has no rights to any consumer hardware OpenAI develops
- OpenAI completed its recapitalization, with the OpenAI Foundation holding a 26% equity stake in OpenAI Group valued at approximately $130 billion at the October 2025 valuation
The Stargate Layer: Infrastructure OpenAI Controls
The Stargate project, announced in January 2025 with a $500 billion buildout target, provides the infrastructure context that makes OpenAI’s compute diversification legally and operationally possible. The flagship site in Abilene, Texas came online in September 2025, with additional sites planned across New Mexico and Ohio.
OpenAI, Oracle, and SoftBank lead Stargate operationally, with Nvidia, Microsoft, and Arm as technology partners. Stargate compute infrastructure is specifically outside the Azure stateless API exclusivity clause, which applies to API delivery, not raw data center construction. OpenAI is targeting approximately $600 billion in total compute spending by 2030.
Comparing OpenAI’s Three Primary Cloud Partners
| Dimension | Microsoft Azure | Amazon AWS | Oracle (Stargate) |
|---|---|---|---|
| Relationship type | Exclusive stateless API host; IP licensor | Exclusive third-party cloud for Frontier enterprise | Stargate infrastructure builder |
| Financial commitment | $250B Azure purchase committed by OpenAI | $38B compute deal (Nov 2025) + $50B investor stake | $300B+ Stargate project scope |
| Scope | All API calls, OpenAI first-party products | Enterprise Frontier platform only | Training and inference data centers |
| Microsoft equity stake | 27% in OpenAI Group PBC, valued ~$135B | N/A | N/A |
| AGI clause | IP access continues post-AGI through 2032; revenue share ends on AGI confirmation | Not disclosed | Not disclosed |
ChatGPT’s User Scale in 2026
ChatGPT reached 800 million weekly active users as of October 2025, according to CEO Sam Altman’s announcement at OpenAI Dev Day. Growth has continued since, with reports indicating the platform is approaching 900 million weekly active users as of early 2026.
India represents a particularly significant growth market. As of February 2026, India accounts for 100 million weekly active ChatGPT users, making it OpenAI’s second-largest market after the United States. Altman disclosed this figure ahead of the India AI Impact Summit in New Delhi, where he highlighted India’s rapid adoption across students, developers, small businesses, and enterprises.
Limitations and Considerations
OpenAI’s compute commitments now span multiple providers with total projected spending approaching $600 billion by 2030. While Amazon now holds more aggregate compute commitments than Azure over the long term, Microsoft retains exclusive control of the API layer that powers every OpenAI product interaction. The sustainability of revenue targets required to service this infrastructure at scale has not been publicly disclosed by either company.
Frequently Asked Questions (FAQs)
Does the OpenAI-Microsoft partnership still give Microsoft exclusive access to OpenAI’s APIs?
Yes. Azure remains the exclusive cloud provider for all stateless OpenAI APIs, including calls generated through third-party partnerships like Amazon’s. This was explicitly reaffirmed in the February 26, 2026 joint statement. Amazon’s AWS only hosts the Frontier enterprise platform, not OpenAI’s core API layer.
How much did Amazon, Nvidia, and SoftBank each invest in OpenAI’s February 2026 funding round?
Amazon invested $50 billion (structured as $15 billion immediately and $35 billion conditionally), while Nvidia and SoftBank each invested $30 billion. The total round raised $110 billion against a pre-money valuation of $730 billion and a post-money valuation of $840 billion.
What is OpenAI’s current valuation after the February 2026 funding round?
OpenAI’s pre-money valuation stands at $730 billion. Including the $110 billion raised, its post-money valuation reaches $840 billion according to Reuters and Bloomberg. The round remains open for additional investors.
What is the Stargate project and how does it relate to the Microsoft partnership?
Stargate is a $500 billion AI infrastructure initiative led by OpenAI, SoftBank, and Oracle, with Microsoft as a technology partner. Its first data center opened in Abilene, Texas in September 2025. Stargate compute infrastructure falls outside Azure’s API exclusivity clause, giving OpenAI genuine infrastructure independence.
What changed in the October 2025 Microsoft-OpenAI renegotiation?
Microsoft received a 27% stake in OpenAI Group PBC worth approximately $135 billion, and its IP access was extended through 2032, including post-AGI models. In exchange, Microsoft’s right of first refusal as OpenAI’s compute provider was permanently removed. OpenAI committed to purchasing $250 billion in Azure services.
How many ChatGPT users are in India in 2026?
India has 100 million weekly active ChatGPT users as of February 2026, making it OpenAI’s second-largest market globally after the United States. CEO Sam Altman disclosed this figure ahead of the India AI Impact Summit in New Delhi in February 2026.
Is Amazon replacing Microsoft as OpenAI’s primary cloud provider?
No. Amazon’s AWS serves exclusively as the cloud provider for Frontier, OpenAI’s enterprise platform. Azure retains exclusive hosting of all stateless OpenAI APIs, which power every ChatGPT and API interaction. OpenAI has also committed to purchasing $250 billion in Azure services, maintaining deep long-term infrastructure alignment with Microsoft.
What happens to Microsoft’s deal if OpenAI achieves AGI?
An independent expert panel must verify any AGI claim. Once verified, Microsoft retains access to OpenAI’s technology and post-AGI models through 2032, but its rights to OpenAI’s research end at that point or by 2030, whichever comes first. Microsoft’s revenue-sharing arrangement with OpenAI also terminates upon AGI confirmation.
