OpenAI has announced plans to raise $40 billion in a new funding round, with SoftBank Group leading the investment at a staggering $300 billion valuation. The funds will be used to advance AI research, expand computing infrastructure, and enhance its tools.
SoftBank is expected to contribute 75% of the funding, while the remaining investment will come from Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital, according to a source familiar with the matter.
The San Francisco-based AI company has seen significant growth, with 500 million people using ChatGPT every week. Investor interest in artificial intelligence has skyrocketed, as businesses increasingly integrate AI to streamline operations and improve customer experiences.
This latest funding round comes just months after OpenAI secured $6.6 billion in October, which valued the company at $157 billion. The new round nearly doubles its valuation, placing OpenAI among the world’s most valuable private companies, alongside SpaceX, ByteDance, and Stripe.
Analysts suggest OpenAI’s ambitious AI projects require substantial funding, but potential investors are limited. “OpenAI has big plans and needs a lot of capital. SoftBank seems to be the only major player willing to invest at this scale,” said Gil Luria, an analyst at D.A. Davidson & Co.
Additionally, OpenAI is collaborating with SoftBank and Oracle to build a network of data centres under the $500 billion Stargate project, aimed at powering AI workloads across the US.
The company is also planning a structural overhaul, transitioning into a public benefit corporation to attract more investment while balancing shareholder and public interests. However, a source told Reuters that OpenAI must fully transition to a for-profit company by the end of the year to secure SoftBank’s complete funding package.