OpenAI has announced a record-breaking $110 billion venture capital raise, achieving a valuation of $730 billion. The funding includes $50 billion from Amazon, $30 billion from Nvidia (NVDA), and another $30 billion from SoftBank. This financing alone represents approximately 21.5% of all venture capital projected for 2025 and nearly half of total US venture investment in 2024, which spanned over 14,000 transactions.
In related developments, Alphabet (GOOGL) revealed plans for a new data center complex in Minneapolis, entirely powered by renewable energy and featuring the world’s largest battery storage system. Additionally, Nvidia is set to invest $2 billion each in Coherent Corp (COHR) and Lumentum Holdings (LITE) to strengthen its role in the photonics technology that supports AI infrastructure. Following the announcements, shares of Coherent and Lumentum gained 14% and 9%, respectively, while Nvidia’s stock rose more than 3% on the day.
The investment momentum suggests a sustained multi-year capital cycle in AI infrastructure, broadening beyond model development and GPUs to encompass optical networking and energy solutions. Nvidia’s recent quarterly report noted a 73% year-over-year revenue increase, illustrating robust demand for AI-related infrastructure.
