Two weeks ago, OpenAI raised $110 billion from Amazon, SoftBank, and Nvidia at a $730 billion valuation.
Amazon put in $50B. SoftBank $30B. Nvidia $30B.
Valuation jumps to $840 billion.
But then OpenAI turned around and agreed to buy billions in Amazon cloud services. And billions in Nvidia compute.
The money flowed right back to the investors. Like it never left.
But the valuation? That stays.
For Amazon, Nvidia, and SoftBank — this is genius. They get equity AND a guaranteed customer. The investment pays for itself before the returns even come in.
For everyone else buying into AI at these valuations? That’s a number everyone agreed to believe.
So, should you invest in AI?
AI is the most important technology of our lifetime. The opportunity is real. There is tons of money to be made.
But valuations and numbers are key to understanding how to invest.
