OpenAI, the company behind ChatGPT, is seeking a massive $40 billion funding round led by SoftBank, which could catapult its valuation to $300 billion. This would make OpenAI one of the most valuable private companies in the world.
OpenAI, the creator of ChatGPT, is in negotiations with investors, including SoftBank, to secure a massive funding round of approximately $40 billion. This infusion of capital would propel OpenAI's valuation to a staggering $300 billion. According to reports from the Financial Times, SoftBank is poised to invest between $15 billion and $25 billion, forming the cornerstone of this extensive fundraising effort.
Two individuals privy to the ongoing discussions confirmed that the total amount raised could reach as high as $40 billion. OpenAI's valuation is anticipated to surge to $300 billion upon the completion of this new investment, as stated by two sources familiar with the negotiations. However, a definitive figure for the deal remains unconfirmed. OpenAI's trajectory has been remarkable, transforming from a research-oriented startup to a commercially dominant force since the release of ChatGPT in late 2022. In October, the San Francisco-based company secured $6.6 billion in funding at a valuation of $157 billion, positioning it as one of the most highly valued private startups globally. This latest round of funding, both in terms of valuation and unprecedented scale, indicates the continued confidence of investors in backing leading US AI startups, even amidst the emergence of China's DeepSeek, which boasts high-level performance at a significantly lower cost compared to competitors.OpenAI and its key rivals maintain that super-powerful AI systems still necessitate substantial capital and infrastructure investments to be developed and deployed effectively at scale. A portion of the funding secured in this round will be allocated to fulfill OpenAI's commitment of at least $15 billion towards Stargate, a groundbreaking data center project announced last week. Stargate, a collaboration involving SoftBank, Oracle, and Abu Dhabi's state fund MGX, aims to build $100 billion in new AI infrastructure, with the potential to expand to $500 billion over the next four years. Notably, OpenAI will be the sole customer of this project. While OpenAI and SoftBank declined to comment, the funding discussions are reportedly at an early stage, and the final figures could be subject to change. The proposed new funding round could propel OpenAI's valuation to within striking distance of Elon Musk's SpaceX, currently the world's most valuable startup, valued at $350 billion
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