OpenAI's Historic $100B Funding Round: NVIDIA, Amazon Lead AI Investment Surge | February 1, 2026

Daily AI Blog

February 1, 2026

📋 Quick Takeaways

NVIDIA CEO Jensen Huang announces “largest investment ever” in OpenAI’s $100 billion funding round at $830B valuation

Amazon in talks to invest up to $50 billion in OpenAI, potentially becoming the largest single contributor

China approves DeepSeek, ByteDance, Alibaba, Tencent to purchase 400,000+ NVIDIA H200 chips

Meta surges 8%+ after Q4 earnings, announces $115-135 billion AI capex for 2026

Big Tech combined AI capex projected at $505 billion for 2026, up from $366B in 2025

OpenAI preparing Q4 2026 IPO that could value company at $1 trillion

💰 Historic AI Funding & Investments

NVIDIA Announces “Largest Ever” Investment in OpenAI’s $100B Funding Round

Breaking News: NVIDIA CEO Jensen Huang confirmed on January 31 that the company will participate in OpenAI’s current funding round, describing it as potentially “the largest investment we’ve ever made.”

Key Details:

Huang made the announcement while visiting Taipei, calling OpenAI “one of the most consequential companies of our time”
OpenAI is seeking up to $100 billion in this funding round
The round could value OpenAI at approximately $750-830 billion
Multiple tech giants including Microsoft, Amazon, and SoftBank are also in talks to participate

Strategic Significance: This investment deepens the symbiotic relationship between NVIDIA and OpenAI, with NVIDIA’s chips powering OpenAI’s AI models while gaining strategic exposure to the AI applications layer.

Sources: Bloomberg | Fortune | CNBC

Amazon in Talks to Invest Up to $50 Billion in OpenAI

Massive Strategic Shift: Amazon is in advanced negotiations to invest as much as $50 billion in OpenAI, with CEO Andy Jassy leading direct discussions with Sam Altman.

Deal Structure:

Would make Amazon the largest single contributor to OpenAI’s funding round
Investment may include “chips-for-equity” arrangement with Amazon’s Trainium and Inferentia AI chips
OpenAI could gain dedicated server capacity within AWS infrastructure
Deal represents potential expansion of existing $38 billion cloud computing agreement

Competitive Dynamics: This investment is particularly notable given Amazon’s existing $8 billion stake in OpenAI rival Anthropic, signaling a hedge-both-sides strategy in the AI race.

Sources: Wall Street Journal | Bloomberg | CNBC

SoftBank in Talks for Additional $30 Billion Investment in OpenAI

Doubling Down: SoftBank Group, already one of OpenAI’s largest shareholders, is negotiating to invest an additional $30 billion in OpenAI’s current funding round.

Investment Context:

SoftBank previously invested $30 billion for an 11% stake in OpenAI
Combined investment would total approximately $60 billion
SoftBank is also OpenAI’s key infrastructure partner through SB Energy data center projects
The Japanese tech giant operates a 1.2-gigawatt data center hub in Texas for OpenAI

Sources: Wall Street Journal | Reuters

Anthropic Revenue Hits $9B+ Run Rate, Closes $20B Funding at $350B Valuation

Competitor Momentum: Anthropic’s revenue run rate surpassed $9 billion by end of 2025, more than doubling since summer, while closing a $20 billion funding round at $350 billion valuation.

Funding Details:

Led by Coatue Management and GIC (Singapore’s sovereign wealth fund)
Iconiq Capital, Lightspeed, and Menlo Ventures contributing $1B+ each
Separate from the $15 billion Microsoft/NVIDIA investment commitment
Company preparing for potential IPO in late 2026

Growth Trajectory:

Revenue run rate: $4B (July 2025) → $9B+ (December 2025)
Valuation: $183B (September 2025) → $350B (January 2026)
Claude Code generating $500M+ annual run-rate revenue

Sources: Bloomberg | TechCrunch | Financial Times

🇨🇳 China AI Developments

DeepSeek Receives China’s Approval to Purchase NVIDIA H200 AI Chips

Geopolitical Milestone: China granted DeepSeek conditional approval to acquire NVIDIA’s H200 chips, marking a significant development in US-China AI competition.

Approval Scope:

DeepSeek: Conditional approval received, regulatory terms being finalized
ByteDance, Alibaba, Tencent: Permission to collectively purchase 400,000+ H200 GPUs
China’s Ministry of Industry and Information Technology and Ministry of Commerce granted approvals
National Development and Reform Commission (NDRC) determining final conditions

Background: The US allowed NVIDIA to sell H200 processors to vetted Chinese companies in December 2025, in exchange for a 25% tariff on those sales.

Sources: Reuters | Engadget | Taipei Times

Chinese AI Giants Preparing Major February Model Launches

Competitive Intensification: ByteDance, Alibaba, and DeepSeek are preparing to launch next-generation AI models around the Lunar New Year holiday.

Expected Releases:

DeepSeek V4: New flagship model expected mid-February 2026, featuring “MODEL1” architecture
ByteDance: Doubao 2.0 LLM, Seeddream 5.0 (image generation), Seeddance 2.0 (video generation)
Alibaba: New generation flagship models

Industry Impact: Chinese AI firms now hold approximately 15% of global chatbot market share, with DeepSeek at 4% globally. This wave of releases could further close the gap with US frontier models.

Sources: TrendForce | South China Morning Post

Washington Post: China’s AI Robotics Could Be “Next DeepSeek Shock”

Strategic Warning: One year after DeepSeek’s breakthrough disrupted assumptions about US AI dominance, analysts warn that China’s rapid advancement in AI-powered robotics could represent the next major disruption.

Key Concerns:

China’s “four dragons” chip startups (Moore Threads, MetaX, Biren, Enflame) going public
Huawei outlined three-year plan to overtake NVIDIA at September Connect conference
Chinese companies advancing rapidly in autonomous drones and intelligent robotics
Beijing’s coordinated push to scale home-grown NVIDIA rivals

Sources: Washington Post | CNBC

🏢 Big Tech Earnings & AI Strategy

Meta Soars 8%+ After Q4 Earnings, Announces $115-135B AI Capex for 2026

Earnings Beat: Meta reported strong Q4 2025 results, with shares surging after the company demonstrated AI investments are boosting the bottom line.

Financial Highlights:

Q4 Revenue: $59.9 billion (+24% YoY)
Full Year Revenue: $201.0 billion (+22% YoY)
Q4 EPS: $8.88
Free Cash Flow: $14.1 billion
Ad Impressions: +18% YoY; Average Price Per Ad: +6%

2026 AI Investment:

Capital Expenditures: $115-135 billion (vs. street estimate of $110.6B)
Total Expenses: $162-169 billion
Focus on AI data center expansion and next-generation model development

CEO Commentary: Mark Zuckerberg stated: “We had strong business performance in 2025. I’m looking forward to advancing personal superintelligence for people around the world in 2026.”

Sources: CNBC | Bloomberg

Big Tech AI Capex to Reach $505 Billion in 2026

Infrastructure Arms Race: Combined capital expenditures from Microsoft, Meta, Alphabet, and Amazon are projected to hit approximately $505 billion in 2026.

Company Breakdown:

Company	2025 Capex	2026 Capex (Est.)	YoY Growth
Amazon	~$118B	$146B+	+24%
Meta	~$70B	$115-135B	+64-93%
Microsoft	~$70B	$99B	+41%
Alphabet	~$56B	$75B+	+34%
Total	~$366B	~$505B	+38%

Market Implications: The unprecedented spending reflects AI’s transition from experimental technology to mission-critical infrastructure, though investors increasingly demand ROI demonstration.

Sources: Bloomberg | Goldman Sachs

OpenAI IPO Preparations Accelerate, Could Be Largest in History

Public Market Debut: OpenAI has begun informal talks with Wall Street banks for a potential Q4 2026 initial public offering.

IPO Details:

Could value the company at up to $1 trillion
Currently valued at $500 billion
Company has raised approximately $64 billion to date
Committed to $1.4 trillion in data center spending through 2033
Does not expect to turn profitable until 2030

Strategic Considerations:

IPO would likely be on top of the $100B funding round, not a substitute
New hires would receive stock options rather than pre-IPO equity
Public company status could complicate “safe, beneficial AI” mission
CEO Sam Altman has expressed mixed feelings about being a public company CEO

Sources: Fortune | Wall Street Journal

🚗 Corporate AI Investments

Tesla Announces $2B Investment in xAI, $20B for AI and Robotics

AI Pivot Accelerates: Tesla reported Q4 2025 earnings and announced major AI and robotics investments despite pressure on core auto business.

Financial Results:

Q4 Revenue: $24.9 billion
Adjusted EPS: $0.50 (vs. $0.45 expected)
Auto business faces margin pressure

AI Investment Plans:

$2 billion investment in Elon Musk’s xAI startup
Up to $20 billion to accelerate AI and robotics development (roughly double 2025)
Optimus humanoid robot production on track for end of 2026

Strategic Shift: Tesla’s positioning as an “AI and robotics company” rather than pure automaker explains the elevated investment despite near-term profit pressure.

Sources: InvestorPlace | CNBC

📊 Enterprise AI Market Impact

ServiceNow Plunges 10% as AI Threatens Traditional Software Models

Market Disruption Signal: ServiceNow shares dropped 10% post-earnings despite beating estimates, as concerns mount that AI tools are eroding traditional software business models.

Key Concerns:

Stock down 50% over the past year
Down 25% since start of 2026
Investors questioning whether AI will deteriorate demand for traditional workflows and licenses
CEO Bill McDermott defended business model and recent acquisition spree

Industry Implications: The selloff reflects broader concerns that generative AI may fundamentally disrupt enterprise software pricing and demand patterns.

Sources: CNBC

IBM AI Book of Business Doubles to $12.5 Billion

Enterprise AI Traction: IBM reported that its AI-related business more than doubled year-over-year to $12.5 billion, demonstrating strong enterprise AI adoption.

Growth Drivers:

Strong software and infrastructure growth
Market share gains in consulting
New automation tools and AI infrastructure
Shares rose 5% on earnings

Analyst View: Goldman Sachs noted IBM is “on track to complete its pivot to long-term growth” driven by AI adoption across enterprise customers.

Sources: CNBC

📈 Market Impact Analysis

The convergence of record-breaking funding rounds, massive infrastructure investments, and intensifying US-China competition signals AI’s transformation into the defining technology of the decade.

Key Observations:

Unprecedented Capital Concentration: The potential $100B+ flowing into OpenAI alone—from NVIDIA, Amazon, Microsoft, and SoftBank—represents the largest private funding effort in technology history.
Big Tech All-In on AI: With $505B in combined 2026 capex, hyperscalers are betting their futures on AI infrastructure, accepting near-term margin pressure for long-term positioning.
China Catching Up: DeepSeek’s chip approvals and the February model launches suggest Chinese AI firms are closing the capability gap faster than expected.
Software Disruption Begins: ServiceNow’s collapse signals that AI may fundamentally reshape enterprise software economics, with traditional SaaS models under threat.
IPO Wave Coming: Both OpenAI and Anthropic preparing for 2026 public listings could be the largest tech IPOs ever, testing public market appetite for AI.

🔮 Looking Ahead

Key Trends to Watch:

OpenAI funding round closure and final valuation
Chinese AI model launches in February
Anthropic IPO timeline developments
Big Tech Q1 2026 AI spending trajectory
Regulatory responses to circular AI financing arrangements

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Last Updated: February 1, 2026, 12:00 PM CST