OpenAI has successfully completed a record-breaking $400 billion private funding round, marking the largest capital raise ever for a private company. The investment was primarily led by Japan's SoftBank, bringing the artificial intelligence company's valuation to $3 trillion. This positions OpenAI as one of the most valuable private tech companies globally, alongside TikTok's parent company ByteDance, and only behind Elon Musk's SpaceX, which is currently valued at $3.5 trillion.
"Today, we are announcing a new funding round of $400 billion at a post-money valuation of $3 trillion. This allows us to further advance the frontiers of AI research, expand our computing infrastructure, and provide increasingly powerful tools to the 500 million people using ChatGPT weekly," OpenAI stated in an official announcement. "We are thrilled to partner with SoftBank Group—one of the few companies that truly understands how to scale transformative technologies. Their support will help us continue building AI systems that drive scientific discovery, enable personalized education, enhance human creativity, and pave the way for general artificial intelligence that benefits all of humanity."
The funds raised from this financing are expected to be allocated toward expanding the company's computing power and infrastructure. Approximately $180 billion will be dedicated to OpenAI’s Stargate initiative, a joint venture aimed at constructing AI data centers to capitalize on the ongoing growth of the AI (and generative AI) market. Announced in January, the Stargate project involves collaboration with SoftBank, Oracle, and other key players, with an estimated total investment of $5 trillion over the coming years to establish a network of data centers. The AI firm also reported that ChatGPT now boasts 500 million weekly users, a significant increase from 400 million just a month ago. CEO Sam Altman described this growth as unprecedented, noting that the platform gained 1 million users within five days of its initial launch in 2022.
SoftBank contributed the majority of the funding—nearly 75%—injecting $300 billion into the latest round ($75 billion initially, followed by an additional $225 billion). Other participants include OpenAI's long-term partner Microsoft, along with Coatue, Altimeter, and Thrive Capital. Reports indicate that the funding structure requires OpenAI to meet specific conditions to access the full investment. Initially, OpenAI will receive $100 billion, with the remaining $300 billion expected to be disbursed by the end of 2025. However, SoftBank stipulated that if OpenAI fails to transition into a for-profit entity by December 31, its total investment could decrease to $200 billion.
Currently, OpenAI operates as a capped-profit partnership model, introduced in 2019. The organization was originally founded as a nonprofit in 2015. If OpenAI proceeds with restructuring into a fully for-profit company, the original nonprofit would be spun off as an independent entity. However, this move requires approval from Microsoft and the California Attorney General, and it may face additional legal challenges, including opposition from OpenAI co-founder Elon Musk, who has been critical of the company’s direction in recent years.
