OpenAI to Secure $40 Billion in Funding to Boost AI Expansion and Restructure
OpenAI is set to raise up to $40 billion in a landmark funding round led by SoftBank Group, valuing the artificial intelligence firm at $300 billion. The Japanese investment giant will provide $10 billion in April, with an additional $30 billion scheduled for December, contingent on OpenAI converting into a for-profit entity by year’s end.
SoftBank also plans to syndicate $10 billion of its investment to undisclosed co-investors. According to sources cited by Reuters, the remainder of the funding round is expected to be backed by Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. Should OpenAI fail to complete its structural transition, SoftBank’s total investment would be reduced to $20 billion.
Funding to Support Expanding AI Capabilities
The new capital will support OpenAI’s ambitions to grow its computational infrastructure, advance research, and improve the capabilities of its AI tools, including ChatGPT, which currently serves over 500 million users weekly.
The step follows increased investor demand for artificial intelligence fueled by growing enterprise use and the spread of AI agents. Businesses are integrating AI into processes at an ever-greater scale to increase productivity and improve customer support, with venture firms competing to finance the next innovation in the field.
Also read: OpenAI Projects Positive Cash Flow by 2029 Amid Soaring AI Development Costs
OpenAI Prepares for Corporate Restructuring
OpenAI will undergo a structural revamp as part of the funding round, creating a public benefit corporation. The new structure aims to attract greater investment while ensuring the company remains focused on delivering public good alongside shareholder value.
The company stated that SoftBank’s initial $10 billion contribution will be financed through loans from Mizuho Bank and other financial institutions. US law firm Morrison Foerster advised SoftBank on the deal.
According to Reuters, OpenAI is also collaborating with SoftBank and Oracle on the $500 billion Stargate project, which aims to build a nationwide network of data centers in the US to support large-scale AI development.
This initiative comes as OpenAI's valuation nearly doubles to $314 billion, up from $157 billion in October 2023, following a $6.6 billion funding round. The company now ranks among the world’s most valuable private firms, alongside SpaceX and Stripe.
