OpenAI has secured a $40 billion investment at a $300 billion post-money valuation, from SoftBank Group, one of the highest funding rounds in the tech industry.
The deal, structured in two phases, will see an initial $10 billion infusion in April, followed by another $30 billion in December—on the condition that OpenAI transitions to a for-profit model by the end of the year.
The Japanese investment giant has indicated that it will syndicate $10 billion of the total investment to undisclosed co-investors.
Sources close to the matter suggest Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital will contribute to the remaining funding. However, if OpenAI’s restructuring falls short, SoftBank will scale down its investment to $20 billion.
The funding strengthens OpenAI’s place at the forefront of artificial intelligence innovation. With ChatGPT attracting 500 million weekly users, the company is doubling down on scaling its computational infrastructure and developing more sophisticated AI systems.
This push aligns with industry trends, where businesses are aggressively integrating AI into their operations.
Investor enthusiasm in AI remains at an all-time high. The demand for intelligent automation, advanced data analysis, and next-generation computing solutions has triggered fierce competition among venture capitalists and tech giants alike. OpenAI’s latest valuation—set to double from October’s $157 billion—underscores its escalating influence in this space.
SoftBank’s move shows its vision to lead in AI investments. The conglomerate plans to finance the initial $10 billion through borrowings from Mizuho Bank and other financial institutions. While it has historically backed AI-focused ventures, its direct commitment to OpenAI is a gamble—especially given concerns about OpenAI’s evolving business model.
Gil Luria, an analyst at D.A. Davidson & Co, pointed out the challenges ahead: “OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve these goals. The list of investors wanting to support that scope has shrunk and may be largely limited to SoftBank, which itself may not have the necessary capital.”
Beyond software advancements, OpenAI is diving into large-scale infrastructure. It has partnered with SoftBank and Oracle to build a network of data centres under the ambitious Stargate project, a $500 billion initiative designed to power AI workloads across the United States. The collaboration signals OpenAI’s commitment to long-term dominance in AI computing.
Meanwhile, the company is also considering a major structural change. It has outlined plans to establish a public benefit corporation, a move intended to attract further investment while balancing shareholder returns with broader societal impact.
With this latest funding round, OpenAI joins an elite club of the world’s most valuable private companies, alongside SpaceX, ByteDance, and Stripe.
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