OpenAI Secures $40 Billion Funding Led by SoftBank, Plans Major Restructuring
OpenAI has successfully secured its largest funding round to date, raising a massive $40 billion from a group of prominent investors.
This influx of capital significantly boosts the AI giant’s valuation to $300 billion, a notable leap from the $157 billion reported just a few months ago. The funding round is primarily led by SoftBank Group Corp., which is committing an initial $7.5 billion, while a syndicate including Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital contributes an additional $2.5 billion.
SoftBank’s involvement underscores its commitment to advancing AI, with Chairman Masayoshi Son previously highlighting the technology as a key force shaping the future. The remaining $30 billion of the funding will be raised in a second phase expected to conclude by the end of 2025. During this phase, SoftBank plans to contribute $22.5 billion, with the remaining $7.5 billion coming from the investor group. These funds will fuel OpenAI’s ambitious plans for AI research and integration into more practical applications.
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As part of the funding agreement, OpenAI is set to restructure its corporate structure, splitting its for-profit business operations from its non-profit parent entity. This separation aims to streamline operations and enhance flexibility in forming new commercial partnerships. The restructuring is planned for completion by the end of 2025, and if it does not go through, SoftBank has the right to reduce its funding commitment from $30 billion to $20 billion. In such a case, OpenAI might have to seek additional investors to bridge the gap.
Besides SoftBank’s substantial input, other major financial entities are also showing interest. Magnetar Capital, based in Illinois, is reportedly considering a $1 billion investment, though details are still being finalized. The involvement of these key players highlights the growing momentum and strategic positioning of OpenAI as it continues to shape the future of artificial intelligence.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
