OpenAI Closing $40B Funding Round Led by SoftBank

OpenAI Secures Significant New Funding

Concurrent with the expansion of its image generation features through ChatGPT, OpenAI is nearing the completion of a substantial new funding initiative.

According to a recent Bloomberg report, the company is poised to finalize a funding round valued at $40 billion, with SoftBank taking the lead.

Investor Participation

Discussions are underway with several other investment firms to join the round.

• Magnetar Capital, a prominent hedge fund, is considering a potential investment of $1 billion.
• Coatue Management, Founders Fund, and Altimeter Capital Management are also engaged in negotiations to participate.

Funding Structure

SoftBank is initially expected to contribute $7.5 billion to the round.

An additional $2.5 billion will be provided by a group of investors working in conjunction with SoftBank.

A subsequent tranche of funding is anticipated later in the year, involving a further $22.5 billion investment from SoftBank and an additional $7.5 billion from the investor syndicate.

Valuation Growth

OpenAI’s previous funding round, finalized in October 2024 and led by Thrive Capital, totaled $6.6 billion and resulted in a company valuation of $157 billion.

Bloomberg’s reporting suggests that this new mega-round will elevate OpenAI’s valuation to an impressive $300 billion.

This substantial increase reflects the growing confidence in OpenAI’s technological advancements and market position.