OpenAI announced Monday that it will raise $40 billion at a $300 billion valuation in a fresh investment round spearheaded by SoftBank Group to improve its tools, increase computational infrastructure, and further AI research.
According to a person familiar with the situation, SoftBank would supply 75% of the investment, with the remaining amount coming from Thrive Capital, Microsoft, Coatue Management, and Altimeter Capital.
According to OpenAI, it aims to provide the 500 million users of ChatGPT each week with ever-more-powerful capabilities.
Due to the growing popularity of chatbots and the development of advanced AI agents, investor interest in the artificial intelligence space has increased dramatically in recent years.
While venture capital companies vie to support potential AI startups, businesses have used AI technology to improve customer experiences and optimize operations.
In October, San Francisco-based OpenAI concluded a $6.6 billion investment round, valuing the business at $157 billion. The AI startup’s valuation would almost treble as a result of the latest fundraising round.
“OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve these goals,” D.A. Davidson & Co analyst Gil Luria said.
“The list of investors wanting to support that scope has shrunk and may be largely limited to SoftBank, which itself may not have the necessary capital.”
Under the $500 billion Stargate project, OpenAI is collaborating with SoftBank and Oracle to build a network of data centers that will support artificial intelligence workloads in the US.
OpenAI, which is supported by Microsoft, also intends to restructure, stating that it would establish a public benefit company in order to draw in additional funding and resources while striking a balance between the interests of shareholders and the general public.
A source with knowledge of the situation told Reuters on Friday that OpenAI has to become a for-profit business by the end of the year in order to get the entire $40 billion in investment led by SoftBank.
With this new investment, OpenAI will become one of the most valuable private firms, along with SpaceX, ByteDance in China, and Stripe.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
