OpenAI announced it will raise $40bn in a new funding round led by SoftBank Group at a $300bn valuation to advance AI research, expand computational infrastructure and enhance its tools.
The funding news came the same day OpenAI announced it was building a more open generative AI model as it faces growing competition in the open-source space from Chinese rival DeepSeek, and Meta.
The move would mark a strategic shift by the Microsoft-backed company, which until now has been a fierce defender of closed, proprietary models that do not allow developers to modify the basic technology to make AI more adapted to their goals.
OpenAI announces $40bn funding boost
SoftBank will provide 75 per cent of the new funding, Reuters reported, citing unnamed sources.
The remainder is to come from Microsoft, Coatue Management, Altimeter Capital and Thrive Capital.
OpenAI said it looks to deliver increasingly powerful tools for the 500m people who use ChatGPT every week.
Investor enthusiasm for the artificial intelligence sector has surged significantly in recent years, driven by widespread adoption of chatbots and the emergence of sophisticated AI agents.
Enterprises have integrated AI solutions to streamline their operations and enhance customer experiences, while venture capital firms compete to back promising AI startups.
San Francisco-based OpenAI had closed a $6.6bn funding round in October, which valued the company at $157bn.
The new funding round would nearly double the valuation of the AI startup.
Microsoft-backed OpenAI also plans to revamp its structure, saying it would create a public benefit corporation to attract more investment and resources while balancing shareholder interests with public benefits.
OpenAI must transition to a for-profit company by the end of the year to secure the full $40bn funding led by SoftBank, a person familiar with the matter told Reuters on Friday.
With the latest funding, OpenAI will join the ranks of the most valuable private companies, such as SpaceX, China’s ByteDance and Stripe.
