OpenAI, the AI company behind ChatGPT, has finalized a monumental $40-billion funding round, marking the largest such deal in history.
The new round, which includes investments from SoftBank Group Corp. as well as a syndicate of other investors, brings OpenAI’s valuation to an astonishing $300 billion, nearly double its previous valuation of $157 billion from October 2024.
The deal includes an initial $7.5 billion investment from SoftBank, along with $2.5 billion from a group of additional investors, such as Microsoft, Coatue Management, Altimeter Capital Management, and Thrive Capital.
The second phase of the investment, set to close by the end of 2025, will see SoftBank contributing $22.5 billion, while the syndicate will add another $7.5 billion.
This funding will be used to push the development of OpenAI’s technologies, including ChatGPT, which now serves hundreds of millions of users each week.
CEO Sam Altman emphasized that the capital will enable OpenAI to push the boundaries of AI and integrate it more deeply into everyday life.
The funding round also sets the stage for a significant corporate restructuring. OpenAI plans to give its for-profit arm independence from the nonprofit organization that currently governs it, a move that is expected to be completed by the end of this year.
This restructuring is tied to specific terms in the agreement, including a reduction of SoftBank’s total contribution if the restructuring is not completed on time.
SoftBank Chairman Masayoshi Son praised the deal, calling AI “a defining force shaping humanity’s future.” He added that the expanded partnership would accelerate OpenAI’s mission to unlock the full potential of artificial intelligence.
With this investment, OpenAI has also made strides in attracting other potential investors like Magnetar Capital and Founders Fund, further solidifying its position as a leader in the AI space.