Jaden Schaefer

And that might actually creep up for people coming in the future.

But I mean, they're basically proving to everyone, look, we can get any amount of money, $50 billion from Amazon, $30 billion from NVIDIA, $30 billion from SoftBank.

And I think what's happening is these are kind of like the anchor players in this round that are going to put in, right, the huge checks.

And then they're going to have a lot of VCs and other capital allocators.

come in, kind of top up the full fund.

Here's what they said about it.

They said, we're entering a new phase where frontier AI moves from research into daily use at global scale.

Leadership will be defined by who can scale infrastructure fast enough to meet demand and turn that capacity into products people rely on.

I think a huge part of the money that they've raised is tied to infrastructure partnerships, right?

I mean, when you're getting it from Amazon, NVIDIA, and NVIDIA, those two players, I think is going to be a lot of that's going to be CapEx.

Just like they've done with some prior rounds, some of the investment is going to come in the form of services and compute credits.

So it's not actually just pure cash, but they didn't really disclose what the breakdown is.

And I think that that serves a couple different purposes.

One, I mean, if they want to get some venture capital dollars in and other people investing sovereign wealth funds, all that kind of stuff, who's going to put actual cash in?

I think it makes it look pretty good if they're like, look, we just got $50 billion from Amazon.

Now, is $25 billion of that just credits on AWS or perhaps some form of the $30 billion from Nvidia is just kind of prepayment for the chips that OpenAI is going to directly be purchasing from them?

There's a lot of these kind of deals going on where they're not actually directly getting cash, but the headline number is big and it's able to help them raise actual cash from other players.

This is all following their March round that they did last year, which they brought in about $40 billion at a $300 billion valuation.

So jumping from $300 billion to $730 billion is massive.

I mean, they're getting close to a trillion dollar valuation here.