OpenAI has closed a new $40 billion funding round led by SoftBank, bringing the artificial intelligence startup's valuation to $300 billion. It is the largest funding round for a private technology company in history, CNBC reports.
The initial funding will be $10 billion from SoftBank. The startup will receive the remaining $30 billion by the end of 2025, but only on the condition that OpenAI becomes a commercial company by then, otherwise it will lose a quarter of the deal.
Other investors including Microsoft, Coatue, Altimeter and Thrive also joined the new funding round. The $300 billion valuation puts the ChatGPT maker on par with some of the world’s most valuable private companies, such as TikTok, and comes close to SpaceX’s $350 billion valuation.
The new funding round closed shortly after Bloomberg reported that OpenAI could generate $12.7 billion in revenue in 2025, nearly four times the revenue it generated in 2024. Despite this increase in revenue, it won't be enough to cover its expenses. The AI startup isn't expected to break even until 2029.
We remind you that SoftBank is an active investor in the ChatGPT manufacturer and, in particular, is a participant in the Stargate project, investments in which are planned to be increased to $500 billion. It was also reported a little earlier that the company wants to invest $1 trillion in industrial parks in the US.