OpenAI Raises $40B, Valuation Hits $300B
Artificial intelligence leader OpenAI has successfully completed a landmark funding round, securing $40 billion from SoftBank Group and other prominent investors, elevating its valuation to $300 billion, including the newly raised capital. According to PitchBook data, this represents the largest funding round in AI industry history, nearly doubling the company's valuation from $157 billion in October 2024.
“ChatGPT is used by hundreds of millions of people every week,” stated OpenAI CEO Sam Altman in a press release about the latest investment. “This funding will help us advance cutting-edge technologies and make AI even more useful in everyday life.”
Sources familiar with the matter revealed that OpenAI is planning a corporate restructuring before the end of the year, aiming to separate its profit-driven division from the nonprofit organization that currently oversees it.
Leading the investment round, SoftBank is set to contribute $7.5 billion initially, along with an additional $2.5 billion from a consortium of investors. Other participants include Microsoft, Coatue Management, Altimeter Capital Management, and Thrive Capital. By the end of 2025, a second wave of investment totaling $30 billion is expected, comprising $22.5 billion from SoftBank and $7.5 billion from the consortium.
As part of the agreement, OpenAI is incentivized to complete its restructuring swiftly. Should the process remain incomplete by the end of the year, SoftBank reserves the right to reduce its total contribution from $30 billion to $20 billion, prompting OpenAI to seek alternative investors to cover the shortfall.
SoftBank's initial investment will be financed through Mizuho Bank and other financial institutions, according to documents filed on Monday.
SoftBank Chairman Masayoshi Son described AI as a “defining force shaping humanity's future.” He added, “Our expanded partnership with OpenAI accelerates our shared vision of unlocking its full potential.”
Additionally, sources indicated that other investors, including Magnetar Capital and Founders Fund, are negotiating their participation in this funding round. The Illinois-based hedge fund Magnetar Capital may contribute up to $1 billion.
