OpenAI has finalised a $40bn funding round led by SoftBank, setting a new record for private tech fundraising and bringing the artificial intelligence company’s valuation to $300bn. The financing is intended to support OpenAI’s push toward artificial general intelligence (AGI), expand its computing infrastructure, and scale services for the 500 million people who use ChatGPT weekly.
SoftBank is contributing up to $30bn, while Microsoft, Coatue, Altimeter, and Thrive Capital make up the remaining $10bn. Around $18bn of the funding is expected to support the Stargate project—a major data centre initiative in partnership with Oracle and SoftBank.
The investment is contingent on OpenAI restructuring into a fully for-profit entity by the end of 2025. If the transition does not occur, SoftBank’s total commitment could be reduced to $20bn. Currently, OpenAI operates under a capped-profit hybrid model, with a non-profit parent controlling the limited partnership established in 2019. The proposed shift would spin out the non-profit and give the for-profit arm full independence, subject to regulatory approvals and stakeholder consent, including Microsoft and the California Attorney General.
CEO Sam Altman, who co-founded OpenAI in 2015 as a non-profit lab, is shifting his focus from operations to research and product development. Operating chief Brad Lightcap will assume greater responsibility for day-to-day functions.
OpenAI’s user base has surged in recent months, with ChatGPT now reaching 500 million weekly users, up from 400 million last month. Altman said the product “added one million users in the last hour” when commenting on growth via X.
Despite rapid growth, OpenAI posted a $5bn loss on $3.7bn in revenue last year. The company expects revenue to triple in 2025, reaching $12.7bn.
The fundraising follows OpenAI’s October 2023 round that valued the firm at $157bn. With its new $300bn valuation, OpenAI is now among the world’s most valuable private companies, behind only SpaceX and level with ByteDance.
