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OpenAI clinches $840bn valuation with new funding from Amazon, Nvidia, SoftBank

The infusion will help OpenAI secure advanced AI chips and the computing capacity it needs to maintain its lead position in the AI industry

Reuters
Reuters

27 February, 2026

OpenAI clinches $840bn valuation with new funding from Amazon, Nvidia, SoftBank
Image credit: Getty Images

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OpenAI secured $110bn in funding, valuing it at $840bn, with major investments from SoftBank, Nvidia, and Amazon, signaling continued AI investment despite valuation concerns. The funding will fuel AI chip acquisition and computing capacity for competition against Google and Anthropic. Concerns arise about "circular" financing and investment returns, with Amazon's cloud partnership and model development deal also included.

OpenAI’s latest funding round valued the ChatGPT maker at $840bn as Big Tech piled into the $110bn blockbuster round, signaling the AI investment race is alive and well despite recent fears of a valuation bubble.

The funding round, one of the largest private capital raises on record, includes a $30bn investment from SoftBank, $30bn from Nvidia, and $50bn from Amazon. It comes ahead of the AI startup’s expected mega-IPO this year, and Wall Street expects more funding rounds before the debut.

More investors are expected to join the round as it progresses, OpenAI said in a statement on Friday.

Funding boost as competition heats up

The infusion will help OpenAI secure advanced AI chips and the computing capacity it needs to maintain its lead position in the AI industry, especially as competition heats up from Anthropic and Alphabet’s Google.

Read more-Tata and OpenAI to build 1GW AI infrastructure in India

It also exacerbates Wall Street concerns about “circular” financing agreements, where firms invest in and sign supply deals with each other, inflating demand and revenue.

After years of outsized gains, tech stocks have suffered sharp declines in 2026 as investors question whether AI investments will generate sufficient returns to justify lofty valuations.

Nvidia was punished by shareholders this week after the chipmaker said it would pour money into the AI ecosystem, instead of returning cash to shareholders. Nvidia’s investment in OpenAI gives the chip company a financial stake in one of its largest customers, tightening their already intertwined relationship.

OpenAI said on Friday it would use Nvidia’s latest Rubin systems, representing five gigawatts of computing capacity, enough energy to power millions of US households.

It was not immediately clear whether Nvidia’s $30bn investment replaced its earlier commitment announced in September under which Nvidia was set to invest up to $100bn in the startup.

OpenAI and Nvidia did not immediately respond to Reuters’ requests for clarification.

With the latest injection, SoftBank’s investment in OpenAI is set to be $64.6bn, representing an ownership interest of about 13 per cent, the Japanese conglomerate said.

Amazon partnership

The new investment is crucial for OpenAI.

The launch of Google’s Gemini 3 in November has given the Alphabet-owned company a stronger footing, while Anthropic has cemented its lead in the enterprise AI market with its specialized coding tool.

OpenAI, which is yet to turn a profit, is targeting roughly $600bn in total compute spend through 2030, a source told Reuters last week.

Along with the $50bn investment, OpenAI and Amazon have also struck a deal in which OpenAI will utilize two gigawatts of computing capacity powered by Amazon’s in-house Trainium AI chips.

The companies are also expanding their $38bn cloud deal signed last year, with OpenAI saying it would spend an additional $100bn on Amazon Web Services over the next eight years. As well, OpenAI will work with Amazon to develop customized models for the e-commerce company’s engineering teams.

Amazon will start with an initial $15bn investment, followed by another $35 billion in the coming months when certain conditions are met, the companies said.

AWS will be the exclusive third-party cloud provider for OpenAI Frontier, the ChatGPT maker’s enterprise platform for building and running AI agents.

The partnership does not change OpenAI’s relationship with Microsoft, with Microsoft Azure still the exclusive cloud provider for OpenAI’s APIs that provide access to OpenAI’s models, the companies said.

ChatGPT serves more than 900 million weekly active users, OpenAI said, adding that it has surpassed 50 million consumer subscribers. January and February are on track to become the largest months for new subscriber additions, it said.

Abu Dhabi begins Tesla road trials, autonomous truck operations

The Integrated Transport Centre (ITC), announced the commencement of Tesla’s advanced driving trials under driver supervision

Nida Sohail
Nida Sohail

27 February, 2026

Abu Dhabi begins Tesla road trials, autonomous truck operations
Credit for images: WAM/Website

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Abu Dhabi is advancing autonomous mobility by launching Tesla's 'Full Self-Driving (Supervised)' road trials and piloting autonomous trucks in KEZAD. The Integrated Transport Centre (ITC) is overseeing both initiatives, evaluating performance, safety, and operational readiness within structured regulatory frameworks. These projects aim to enhance transport efficiency, support economic competitiveness, and position Abu Dhabi as a regional leader in smart mobility.

Abu Dhabi has taken a significant step toward the future of mobility, launching Tesla’s first ‘Full Self-Driving (Supervised)’ road trials in the emirate while simultaneously overseeing the region’s first pilot operation of autonomous trucks.

The Integrated Transport Centre (ITC), an affiliate of the Department of Municipalities and Transport, announced the commencement of Tesla’s advanced driving trials under driver supervision. The move marks a first for Abu Dhabi and signals the emirate’s growing commitment to smart and autonomous mobility solutions.

Read more-Driverless taxi service launched in Dubai: Details revealed

According to a WAM report, the trials are being conducted within a structured regulatory framework designed to evaluate the technology’s performance under real-world operating conditions and verify its operational and safety readiness before broader adoption.

Tesla’s ‘full self-driving’ put to the test

The road trials are being carried out in coordination with the Legislation Lab at the General Secretariat of the UAE Cabinet. The initiative aims to support innovation while operating within approved regulatory frameworks.

The ITC said the project seeks to establish an advanced model for testing driver-assistance and autonomous driving technologies in the region, ensuring that safety standards remain paramount while new technologies are introduced.

“The supervision of the ITC over the commencement of Tesla’s advanced autonomous driving technology tests reflects its regulatory and legislative role. These tests represent a qualitative step to evaluate the technology’s performance in a real-world operating environment and to collect the necessary data to verify its readiness before any future expansion in usage,” said Dr Abdulla Hamad AlGhfeli, acting director-general of the ITC.

He added that through cooperation with strategic partners, the centre aims to strike a careful balance between encouraging innovation and safeguarding road users.

“Through this organised framework, and in cooperation with strategic partners, the centre seeks to strike a careful balance between supporting innovation and encouraging the adoption of smart solutions, while ensuring road user safety, in line with the emirate’s vision of developing an advanced, safe and sustainable transport system,” Dr AlGhfeli said.

MENA’s first autonomous truck pilot in KEZAD

In a parallel development, the ITC also announced its supervision of a pilot project for autonomous truck operations in partnership with Autotech and AD Ports Group.

The project is being implemented within Khalifa Economic Zones Abu Dhabi – KEZAD and is described as the first of its kind in the Middle East and North Africa for logistics and freight transport.

The initiative focuses on evaluating autonomous truck operations within a defined industrial and logistics environment. Pilot trips have been conducted along dedicated routes inside KEZAD in accordance with approved regulatory frameworks and operational standards.

During 2025, the developer worked under ITC supervision to adapt artificial intelligence-based autonomous driving systems to local road requirements and logistics transport needs. The objective has been to ensure safe, seamless operations while assessing the technology’s readiness for real-world deployment.

The ITC said the project forms part of broader efforts to strengthen the emirate’s smart mobility ecosystem and enhance regulatory readiness for innovative transport solutions. It is also expected to improve freight efficiency and operational performance across economic and industrial zones, paving the way for eventual commercial deployment of autonomous logistics services.

“These initiatives contribute to enhancing the efficiency of the transport ecosystem, supporting the competitiveness of economic sectors, and reinforcing Abu Dhabi’s position as a leading regional hub in adopting smart mobility solutions and autonomous systems, in line with the UAE National Strategy for Artificial Intelligence 2031,” Dr AlGhfeli said.

Together, the Tesla trials and autonomous truck pilot underscore Abu Dhabi’s strategy to integrate cutting-edge technologies into its transport infrastructure while maintaining a strong regulatory framework, positioning the emirate at the forefront of autonomous mobility development in the region.

UAE braces for light rain, cooler temperatures early this week

Maritime conditions are forecast to deteriorate slightly, with the Arabian Gulf turning rough by night, while the Oman Sea will be slight to moderate

Rajiv Pillai
Rajiv Pillai

27 February, 2026

UAE braces for light rain, cooler temperatures early this week
Image: Getty Images

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The UAE will experience partly cloudy to cloudy conditions early this week, with a chance of light rain, especially over islands and western coastal areas. Temperatures will decrease, while humidity increases, potentially reducing visibility. Winds will be light to moderate, becoming stronger at times. The Arabian Gulf's sea conditions will worsen, turning rough by Tuesday night.

The UAE could see light rainfall and a drop in temperatures early this week, with the National Center of Meteorology (NCM) forecasting partly cloudy to cloudy conditions across several areas, including islands and western coastal zones.

According to the NCM’s outlook for Monday, March 2, skies will be partly cloudy to cloudy at times, with a chance of light rain by night and into Tuesday morning, particularly over offshore islands. Temperatures are expected to decrease, while humidity levels will rise overnight and into Tuesday morning across some western coastal and internal areas, increasing the likelihood of reduced visibility in the early hours.

Winds on Monday are forecast to be light to moderate, blowing southeasterly to northeasterly at speeds of 10–25 km/h, freshening at times and reaching up to 35 km/h. Sea conditions in the Arabian Gulf will be slight to moderate, while the Oman Sea will remain slight.

On Tuesday, March 3, cloud cover is expected to persist, with rainfall possible over islands and some western coastal areas. Winds will shift from southeasterly to northwesterly, maintaining speeds of 10–25 km/h and reaching up to 40 km/h, particularly by night over the sea. Maritime conditions are forecast to deteriorate slightly, with the Arabian Gulf turning rough by night, while the Oman Sea will be slight to moderate.

Oil prices rise as US and Iran extend talks into next week

The US and Iran held indirect talks in Geneva on Thursday after President Donald Trump ordered a military build-up in the region

Reuters
Reuters

27 February, 2026

Oil prices rise as US and Iran extend talks into next week

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Oil prices rose due to uncertainty surrounding US-Iran nuclear talks and potential military action, fueling supply disruption fears. Brent and WTI crude both increased by over a dollar. Geopolitical risk premiums are built into prices. Saudi Arabia is increasing production, and OPEC+ might raise output in April to counter potential supply shocks.

Oil prices rose by about $1 on Friday as traders remained on alert for potential supply disruptions after the US and Iran extended nuclear talks.

Brent crude futures advanced by $1.13, or 1.6 per cent, to $71.88 a barrel by 1030 GMT while US West Texas Intermediate crude was up $1.10, or 1.7 per cent, at $66.31.

“Uncertainty prevails, fear is pushing prices higher today,” said Tamas Varga, an oil analyst at brokerage PVM. “It is completely driven by the outcome of the Iranian nuclear talks and possible military action the U.S. might take against Iran.”

For the week, Brent was set to finish with a gain of 0.2 per cent while WTI was poised for a 0.1 per cent decline.

The US and Iran held indirect talks in Geneva on Thursday after President Donald Trump ordered a military build-up in the region.

Oil prices gained more than a dollar a barrel during the talks on media reports indicating that discussions had stalled over US insistence on zero enrichment of uranium by Iran. However, prices eased after the Omani mediator said the two sides had made progress in the talks.

They plan to resume negotiations with technical-level discussions scheduled next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on X.

“We think the latest round of talks offers some hope on chances of a peaceful resolution, but military strikes are in no way out of the equation,” said DBS analyst Suvro Sarkar.

Trump said on February 19 that Iran must make a deal over its nuclear programme within 10 to 15 days or “really bad things” will happen.

Geopolitical risk premiums of $8 to $10 a barrel have built in oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, where about 20% of global oil supply passes, Sarkar said.

To cushion the impact from a possible strike, Saudi Arabia is increasing oil production and exports, two sources familiar with the plans told Reuters.

Producer group OPEC+, meanwhile, is likely to consider raising oil output by 137,000 barrels per day for April at its March 1 meeting, sources said, after suspending production increases in the first quarter.

Netflix, Paramount shares jump as months-long fight for Warner Bros ends

Paramount Skydance maintained its dogged pursuit of Warner Bros, launching a hostile campaign to wrest the prize from Netflix

Reuters
Reuters

27 February, 2026

Netflix, Paramount shares jump as months-long fight for Warner Bros ends

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Netflix stock rose after withdrawing from the Warner Bros. bidding war, deeming the price too high. Paramount stock surged upon winning, although antitrust scrutiny looms. Paramount's winning bid, supported by Skydance, included a higher price and termination fee. Analysts see Netflix's withdrawal as financially sound and potentially a win for all parties.

Netflix jumped more than 9 per cent premarket on Friday as investors cheered its decision to exit the fight for Warner Bros Discovery, while Paramount rose about 10 per cent on winning the race for some of the world’s most prized TV and film assets.

The end of the months-long bidding war put the focus back on the significant antitrust scrutiny that the Paramount-Warner Bros tie-up would face in the US and Europe, including an active investigation in California. Warner Bros shares were marginally lower.

Read more-Paramount Skydance wins Warner after Netflix walks away

Paramount Skydance maintained its dogged pursuit of Warner Bros, launching a hostile campaign to wrest the prize from Netflix. It managed to lure Warner Bros back to the bargaining table last week, with a revised $31-a-share bid that topped Netflix’s $27.75 offer for the studio and streaming assets.

Netflix said the price required to stay in the contest had climbed beyond what it considered financially sound, confirming to Reuters that it would withdraw from the takeover battle. “We’ve always been disciplined… the deal is no longer financially attractive,” the company said.

“The bid always looked like a mix of offence and defence – shoring up content and scale, while keeping competition from gaining any edge, but at a very high price,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“For now, at least, the market seems to be pricing this as a win for everyone.”

In the fight for Warner Bros, the Paramount consortium backed by billionaire Larry Ellison and led by his son, Paramount CEO David Ellison, also boosted its termination fee to $7bn and expanded its financing commitments, including $45.7bn in equity.

“In the US, we believe Paramount has a good enough relationship with the presidential administration to ease concerns, and the Department of Justice has set a precedent in overlooking the merger of major studios when Disney bought Fox,” analysts at Morningstar said.

British Airways owner IAG beats profit estimates on premium demand

Other European carriers are also benefiting from robust demand at the top end of the market, with Lufthansa rolling out new premium seats

Reuters
Reuters

27 February, 2026

British Airways owner IAG beats profit estimates on premium demand
Image credit: Getty Images

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IAG reported better-than-expected annual profits driven by strong transatlantic demand, especially in premium cabins, and lower fuel costs. While economy fares showed earlier weakness, premium demand rebounded. IAG will return €1.5bn to shareholders. Capacity is expected to grow 3%. Despite strong performance, Air France-KLM's share price growth surpassed IAG's.

British Airways owner IAG reported better than expected annual profit on Friday, helped by lower fuel costs and demand strength on core transatlantic routes and in premium cabins.

European airlines have been buoyed by premium demand across the North Atlantic, a sector-wide trend in which affluent travellers continue to spend even as US demand for economy fares has softened.

IAG has been a European leader in recent years thanks to strengthened transatlantic links in North and South America. However, price-sensitive travellers have pulled back against a backdrop of tariff-related uncertainty and shifting US demand signals.

Read more-European airlines reroute flights to avoid Iranian and Iraqi airspace

The group warned in November of weakness in the economy segment of the transatlantic market, sending its share price lower.

“Since Q3 we have seen a rebound,” chief executive Luis Gallego told a media call, adding that premium and corporate demand were performing particularly well at British Airways and that bookings for the first quarter of 2026 were strong.

The shares have since recovered, but IAG has lost top spot for share-price growth to Air France-KLM, shares in which have jumped by 50 per cent in the past year. IAG shares are up 36 per cent over the same period.

Other European carriers are also benefiting from robust demand at the top end of the market, with Lufthansa rolling out new premium seats and Air France enhancing premium products through upgraded cabins, lounges and onboard services.

IAG reported operating profit before exceptional items of €5.02bn euros ($5.93bn), slightly ahead of the €4.97bn forecast by analysts polled by LSEG and up 13 per cent year on year.

The company said on Thursday that it would return €1.5bn to shareholders over the next 12 months, starting with a €500m share buyback to be completed by the end of May.

It added that it expected capacity growth of about 3 per cent, with no delivery delays projected from planemakers Airbus and Boeing.

Finance chief Nicholas Cadbury told reporters there was still little visibility for the second and third quarters, explaining why the group did not provide a more detailed outlook, and there was some weakness in the Africa and Middle East region.

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