Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Record $110 billion OpenAI round drives 2026 surge as Nvidia signals pullback in Simple Termsand what it means for users..
Artificial intelligence funding in 2026 has begun at a pace that makes last year’s record look conservative, as per a report by BestBrokers. In just the first two months of the year, AI startups have attracted $220 billion globally, nearly matching the $270.2 billion raised across all of 2025. 2025 was the first year in which funding for artificial intelligence exceeded half of all VC deal value, accounting for 52.7% of the total $512.6 billion invested by venture capital firms.
At the centre of this surge is the historic $110 billion financing round by OpenAI, the largest startup funding round ever recorded, accounting half of the $220 billion raised so far this year. The deal now values the ChatGPT developer at $840 billion and was backed by Amazon, SoftBank and NVIDIA.
OpenAI’s closest rival, Anthropic, secured a $30 billion Series G round in February, lifting its valuation to $380 billion. The deal was led by sovereign wealth fund GIC and hedge fund Coatue, according to the report.
Meanwhile, xAI, founded by Elon Musk, raised $20 billion in a Series E round, exceeding its initial $15 billion target and pushing its valuation to $230 billion.
For both the AI companies, NVIDIA appears again as a key backer, reinforcing its strategic position not just as a chip supplier but as an equity participant across the AI stack. Yet, it appears that NVIDIA’s participation in funding would hit a pause, as its CEO, Jensen Huang hinted that it would not deliver the remaining of the promised $100 billion to OpenAI.
Speaking at the Morgan Stanley Technology, Media and Telecom conference on March 4, Huang said the opportunity to deploy another $100 billion into OpenAI is “probably not in the cards,” noting that the ChatGPT maker is widely expected to debut on the stock market later this year. “The reason for that is because they’re going to go public,” he said.
Taken together, the three largest deals — OpenAI, Anthropic and xAI — account for $160 billion, highlighting a stark trend: venture capital in AI is increasingly flowing to a handful of foundation model developers rather than being evenly distributed across early-stage startups.