OpenAI Achieves Unprecedented $40 Billion Funding
SoftBank spearheads an investment round that places OpenAI's valuation at $300 billion, as the organization prepares to enhance its AI research and infrastructure.
OpenAI, the creator of ChatGPT, has successfully concluded a $40 billion funding round, marking the largest amount ever secured by a private tech firm.
This funding elevates OpenAI's valuation to $300 billion, nearly three times the former record for a private technology company.
SoftBank spearheaded the investment round with a $30 billion contribution, joined by other backers such as Microsoft, Coatue, Altimeter, and Thrive.
The capital will be allocated to "expand the frontiers of AI research further" and enhance OpenAI's computing infrastructure.
Around $18 billion of the funding is designated for the Stargate project, a collaboration involving SoftBank, OpenAI, and Oracle.
However, this investment comes with stipulations, including a requirement for OpenAI to transition to a for-profit model by December 31, 2025, or face a reduction of SoftBank’s investment to $20 billion.
OpenAI intends to utilize the new capital to fuel growth, recently announcing that ChatGPT now boasts over 500 million users, a 100 million increase from the previous month.
Additionally, the company anticipates its revenue will triple to $12.7 billion by year’s end.
This funding elevates OpenAI's valuation to $300 billion, nearly three times the former record for a private technology company.
SoftBank spearheaded the investment round with a $30 billion contribution, joined by other backers such as Microsoft, Coatue, Altimeter, and Thrive.
The capital will be allocated to "expand the frontiers of AI research further" and enhance OpenAI's computing infrastructure.
Around $18 billion of the funding is designated for the Stargate project, a collaboration involving SoftBank, OpenAI, and Oracle.
However, this investment comes with stipulations, including a requirement for OpenAI to transition to a for-profit model by December 31, 2025, or face a reduction of SoftBank’s investment to $20 billion.
OpenAI intends to utilize the new capital to fuel growth, recently announcing that ChatGPT now boasts over 500 million users, a 100 million increase from the previous month.
Additionally, the company anticipates its revenue will triple to $12.7 billion by year’s end.
