Surge of 70%! Valuations skyrocketing, AI going crazy! 1.45 trillion dollars in funds suddenly pouring in!

AI Giants, Valuations Soar!

According to the latest news, OpenAI’s new funding round is expected to surpass $100 billion. Including this round, OpenAI’s overall valuation could exceed $850 billion, a 70% increase from the end of last year.

Additionally, on February 19, Tata Group of India announced a partnership with OpenAI to jointly build artificial intelligence infrastructure in India and launch collaborative market solutions. On the same day, Reliance Industries of India announced plans to invest $110 billion over the next seven years to advance AI data center development. Two days earlier, Adani Group of India announced a $100 billion investment in large-scale data centers by 2035.

In other words, just Reliance Industries and Adani Group alone are expected to invest a total of $210 billion in AI data centers in the future, equivalent to approximately 14.5 trillion RMB.

OpenAI Valuation Set to Surge to $850 Billion

According to Bloomberg, sources familiar with the matter revealed that OpenAI is about to complete the first phase of a new funding round, which could exceed $100 billion. This record-breaking financing will provide the startup with more capital to develop its AI tools.

Some sources say that as this ChatGPT maker prepares to invest trillions of dollars in infrastructure, the company’s overall valuation could surpass $850 billion after including the final funding amount, exceeding the initial estimate of $830 billion. An anonymous person stated that the company’s pre-money valuation will remain at $730 billion. By the end of 2025, OpenAI’s valuation is projected to reach about $500 billion.

Reports indicate that the first part of this funding round will mainly come from strategic investors, including Amazon, SoftBank Group, Nvidia, and Microsoft. If these companies’ investments approach the upper end of discussions, commitments could total nearly $100 billion. Some sources expect these companies to finalize their respective investments by the end of this month.

Sources say that the next phase of this funding will include venture capital firms, sovereign wealth funds, and other financial investors, expected to be completed later and potentially significantly increase the total funding amount. The deal has not yet been finalized, and details may still change.

Bloomberg previously reported that related to the upcoming deal, Amazon is expected to invest up to $50 billion, SoftBank up to $30 billion, and Nvidia has discussed investing $20 billion. Funds from corporate investors are expected to be disbursed in several installments within this year.

Tata Group of India and OpenAI Form Partnership

On February 19, Tata Group’s IT subsidiary Tata Consultancy Services (TCS) announced a strategic alliance with OpenAI, planning to build AI infrastructure in India and jointly launch market-oriented solutions.

Tata Group stated that this collaboration will enable thousands of TCS employees to use OpenAI’s enterprise-grade ChatGPT tools to enhance productivity and innovation. TCS will also deploy OpenAI’s Codex model to improve software engineering outcomes.

Under a multi-year agreement, TCS’s HyperVault division will develop AI-ready infrastructure powered by green energy to support next-generation workloads. The company said the facilities will include data centers designed for high rack density with liquid cooling technology, interconnected with major cloud regions, aiming to strengthen India’s position as a global AI hub.

“Initially, TCS will develop a 100-megawatt AI infrastructure, with the option to expand to gigawatt levels. This infrastructure will power next-generation AI workloads and position India as a global AI center,” the Indian company stated.

The two companies also plan to combine OpenAI’s platform with TCS’s industry and domain expertise to jointly develop industry-specific AI solutions. As part of joint marketing efforts, TCS said it will deploy, integrate, and scale OpenAI’s AI products for Indian and overseas enterprises, supporting enterprise AI transformation.

Commenting on the partnership, OpenAI CEO Sam Altman said, “Through the ‘OpenAI for India’ initiative and our collaboration with Tata Group, we are jointly building the necessary infrastructure, skills, and local partnerships to develop AI for India, for Indians, and within India, so that more people in the country can access and benefit from it.”

Notably, on the same day, Reliance Industries Chairman Mukesh Ambani announced that Reliance and its telecom subsidiary Jio will invest $109.8 billion over the next seven years to build AI and data infrastructure.

At the AI Impact Summit in New Delhi, Ambani stated that this investment will serve as long-term “national development” capital, focusing on national-level AI computing power and related fields. Currently, the main constraints for India’s domestic AI development are computing power shortages and high costs.

Jio is constructing several gigawatt-scale data centers suitable for AI in Jamnagar. Ambani revealed that over 120 megawatts of computing power will be operational by the second half of this year. He also mentioned plans to build AI-specific data centers powered by renewable energy.

This Tuesday, Indian energy and logistics giant Adani Group announced plans to invest $100 billion before 2035 to build AI data centers powered by renewable energy, aiming to create the world’s largest integrated data center platform. The group stated that this investment will help India gain a more advantageous position in global AI competition, with an estimated AI infrastructure ecosystem worth about $250 billion over the next decade.

(Source: Securities Times)