OpenAI is currently in discussions with investors, including SoftBank, to secure approximately $40 billion in a significant funding round that would elevate the company’s valuation to around $300 billion.
According to reports, SoftBank is poised to invest between $15 billion and $25 billion, making it a key player in this broader funding initiative. This investment could lead to OpenAI amassing up to $40 billion in total capital, although specific figures for the deal have yet to be determined.
Since launching ChatGPT in late 2022, OpenAI has transitioned from a research-driven startup to a leading commercial entity. In October, OpenAI secured $6.6 billion at a valuation of $157 billion, positioning it among the highest valued private startups globally.
The impressive valuation and scale of this funding endeavor indicate that investor confidence in major US AI startups remains robust, even in light of competition from companies like China’s DeepSeek, which claims to offer superior performance at lower costs.
OpenAI and its main competitors consistently emphasize that developing and deploying highly advanced AI systems requires significant capital investment and infrastructure. A portion of the new funding will primarily finance OpenAI’s commitment of at least $15 billion towards Stargate, a new data center project announced recently alongside SoftBank, Oracle, and Abu Dhabi state fund MGX.
Stargate aims to establish $100 billion in AI infrastructure, potentially growing to $500 billion over the next four years, with OpenAI serving as the exclusive customer for this initiative.
The funding discussions are still in the preliminary stages, and the final amounts may be subject to change. Should this funding round come to fruition, OpenAI could be on the verge of rivaling Elon Musk’s SpaceX, currently the most valuable startup globally, which is valued at $350 billion.
OpenAI is part of an escalating competition to develop artificial general intelligence, capable of performing various cognitive tasks on par with or surpassing human abilities. Achieving such levels of intelligence, according to industry experts, necessitates substantial investments in hardware, computing resources, and top-tier talent.
Competing firms like Anthropic and Musk’s xAI have each raised over $10 billion and are vying with major technology companies such as Google and Meta. This funding round is projected to be the largest ever for a US AI startup. Both OpenAI and SoftBank have opted not to comment on the ongoing negotiations.
photo credit: www.ft.com
