OpenAI has closed what is being described as Silicon Valley's largest-ever funding round, raising $122 billion and achieving a valuation of $852 billion. The artificial intelligence company's latest financing was led by Amazon, Nvidia, and SoftBank, with participation from wealthy individual investors and money managers planning to include the startup in exchange-traded funds.

The funding round included $3 billion from retail investors, marking an unusual move for a private company of OpenAI's scale to tap individual investor markets. The massive valuation and funding amount have intensified speculation about the company's potential initial public offering, with industry observers noting the round's structure appears designed to prepare for eventual public markets entry.

The record-breaking funding comes as OpenAI continues to lead the artificial intelligence sector, competing with other major technology companies for market dominance in AI development and deployment. The company's latest valuation represents significant growth and positions it among the most valuable private companies globally.

Meanwhile, other developments in the AI sector include Boston announcing it will become the first major U.S. city to require high school students to demonstrate AI proficiency before graduation, beginning in September. The initiative aims to prepare students for college and careers by teaching them to use AI as a learning tool.

The AI industry has also seen some setbacks, with startup Yupp announcing its closure less than a year after launching with backing from prominent Silicon Valley investors including Andreessen Horowitz's Chris Dixon. The crowdsourced AI model feedback company raised $33 million before shutting down operations.