Massive valuation: OpenAI in talks to raise up to $40 billion that would value ChatGPT owner at a whopping $340 billion, says report

OpenAI is in early discussion to raise up to $40 billion in a new funding round led by Softbank, as per a report. This would value the company at $340 billion, reported The Wall Street Journal.

Double valuation

The funding would almost double the ChatGPT maker’s value, as per the report. In October, OpenAI had raised $6.6 billion at a $157 billion valuation.

Softbank's investment

SoftBank would invest between $15 billion and $25 billion, making it the largest investor in OpenAI, overtaking Microsoft. Currently, Microsoft has committed nearly $14 billion to the company.


SoftBank could spend more than $40 billion on its partnership with OpenAI. “The talks are ongoing and the amount that SoftBank could invest in primary equity into OpenAI is a moving target,” the Financial Times quoted.

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Funding allocation

According to New York Post, a portion of the funding would go toward covering OpenAI's $18 billion commitment to the Trump administration's newly launched Stargate project.

Changes

As per reports, OpenAI CEO Sam Altman wants to reduce the company’s reliance on Microsoft by developing its own AI chips and forming partnerships with other major tech companies like Oracle.

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OpenAI has also planned to shift to a for-profit structure. This move has faced legal challenges from former co-founder Elon Musk.

FAQs

What is the main goal of OpenAI's new funding round?
The main goal is to raise up to $40 billion, boosting OpenAI's valuation to $340 billion and supporting key projects like Stargate.

How will OpenAI reduce its reliance on Microsoft?
OpenAI plans to develop its own AI chips and partner with other tech companies, like Oracle, to lessen its dependency on Microsoft.