OpenAI Raises $110B From Amazon, Nvidia, Others | Bloomberg Tech 2/27/2026

Record $110B raise at $730B valuation

OpenAI closed the largest funding round in history, with Amazon contributing $50 billion and Nvidia $30 billion, signaling massive capital requirements for frontier AI development.

Amazon commits compute, not just cash

The deal includes OpenAI using Amazon's proprietary chips for training and inference, representing a strategic vote of confidence in non-Nvidia AI infrastructure.

Round remains open to VCs and sovereign funds

Despite securing majority commitments from strategic investors, OpenAI continues tapping venture capitalists and sovereign wealth funds to finalize the raise this quarter.

Anthropic rejects Pentagon AI demands

CEO Dario Amodei refused to comply with the Defense Department's proposed safeguards by the deadline, insisting on guarantees against autonomous lethal strikes without human oversight and domestic surveillance of U.S. citizens.

Dual-use technology dilemma escalates

The dispute highlights the tension between civilian AI models and national security needs, with the Pentagon threatening to designate Anthropic as a supply chain risk if it doesn't agree to lawful military use.

$200M contract and coalition at risk

Anthropic jeopardizes its $200 million Palantir partnership as tech workers across Amazon, Google, and Microsoft form coalitions supporting Anthropic's ethical stance against unrestricted defense applications.

Nvidia faces 'tiger parent' growth expectations

Nvidia shares dropped 2% despite strong earnings as investors worry about growth moderation and diversification toward Amazon's chips, reflecting anxiety over AI capex sustainability.

Block cuts 50% of workforce for AI pivot

Jack Dorsey announced Block will eliminate nearly half its staff, admitting he over-hired and is restructuring to bet heavily on AI automation across the company.

High hallucination rates limit automation

Current frontier models exhibit hallucination rates between 26% and 80%, requiring increased human oversight and suggesting AI will augment rather than replace workers in the near term.

Fed policy constrained by AI uncertainty

While AI promises long-term productivity gains, Fed officials remain focused on immediate inflation data and tariff impacts, with labor disruption effects still too early to measure for monetary policy.