OpenAI is set to raise up to $40 billion in a new funding round led by SoftBank Group, pushing its valuation to $300 billion. The funding aims to accelerate AI research, expand computational infrastructure, and enhance AI tools for its growing user base.
SoftBank’s Investment Structure
The Japanese tech investment giant has committed $10 billion in mid-April, with an additional $30 billion planned for December, contingent on OpenAI transitioning to a for-profit model by the end of 2025. SoftBank intends to syndicate $10 billion of its investment to other co-investors, while the remaining funding will come from Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital.
If OpenAI’s restructuring does not proceed as planned, SoftBank’s total investment would be reduced to $20 billion. The company plans to finance its initial $10 billion through borrowings from Mizuho Bank and other financial institutions.
AI Sector’s Investment Boom
Investor interest in AI has surged in recent years, driven by the rapid adoption of chatbots and advanced AI agents. Enterprises continue integrating AI into their operations, while venture capital firms compete to back leading AI startups.
In October 2024, OpenAI closed a $6.6 billion funding round at a $157 billion valuation. This latest round would nearly double the company’s worth, cementing its position as one of the most valuable AI firms globally.
OpenAI’s Future Plans
OpenAI, which now serves 500 million ChatGPT users weekly, plans to roll out even more powerful AI tools. Analysts suggest that while OpenAI’s ambitions require substantial capital, SoftBank may struggle to fund the full amount alone, making strategic partnerships crucial for the investment.
