Summary:
- OpenAI is in advanced talks to raise $40 billion in new funding at a $340 billion valuation, led by SoftBank’s potential $15B-$25B investment.
- The AI firm’s valuation would nearly triple from its $157 billion valuation in October 2024 if the deal closes.
- Funding aims to cover OpenAI’s $5 billion 2024 operational losses and support its $7 trillion Stargate AI data center initiative.
- The investment would mark the largest private AI funding round ever, accelerating global AI infrastructure development.
OpenAI is negotiating a massive $40 billion funding round that would value the artificial intelligence company at $340 billion, according to a Wall Street Journal report. The potential investment comes just three months after OpenAI achieved a $157 billion valuation in October 2024.
SoftBank Group Corp. is positioned to lead the new funding with a proposed $15 billion to $25 billion investment. The capital infusion would address OpenAI’s substantial operational losses, which totaled $5 billion in 2024 against $3.7 billion in revenue. A significant portion of the funds would support Stargate – OpenAI’s $7 trillion initiative to develop a network of advanced AI data centers across the United States.
The funding talks underscore OpenAI’s aggressive expansion strategy despite financial challenges. “The losses could mount,” the Journal reported, noting the company’s ambitious infrastructure plans require unprecedented capital commitments. If finalized, this round would mark the largest single private investment in AI history, tripling OpenAI’s valuation in under six months.
Market analysts highlight the deal’s potential to reshape the global AI landscape, with SoftBank seeking to consolidate its position as the dominant force in artificial intelligence infrastructure development. The proposed investment follows Microsoft’s ongoing $100 billion commitment to Stargate, first revealed in 2024.
Source: Tech Crunch
