OpenAI Secures $110 Billion Funding, Wins Pentagon AI Deal Amid Anthropic Dispute

OpenAI’s $110 billion financing, the largest ever for an AI firm, was led by a consortium that includes Microsoft, Amazon and a host of sovereign wealth funds, according to the Malay Mail. The round also features a tentative $10 billion investment from Amazon, reported by Reuters, underscoring the cloud giant’s deepening partnership with the startup.

Hours after the funding announcement, the company secured a contract to deploy its models on the U.S. Department of War’s classified network, Reuters confirmed. The Pentagon agreement follows a meeting in which CEO Sam Altman told staff that the government would allow OpenAI to build its own “safety stack,” a layered security system, as detailed by Fortune.

The deal arrives amid a public clash between the Defense Department and Anthropic. The New York Times noted that President Trump had ordered federal agencies to halt use of Anthropic’s AI, and a dispute between Secretary of War Pete Hegseth and Anthropic led to the rival’s contracts being cancelled, according to Fortune’s coverage of the week’s events.

Industry observers see the funding and Pentagon win as a strategic pivot for OpenAI, positioning it as the primary AI supplier to the U.S. government while Anthropic’s federal business stalls. The company’s ability to scale its models “for everyone,” as phrased in its own announcement, now hinges on delivering secure, government‑grade AI under the newly signed defense contract.