The AI fever is here. One of its pioneers, OpenAI, has announced a new round of funding. The company wants to raise $40 billion to advance AI research, expand computing infrastructure, and improve tools.
As part of the new round, SoftBank will initially invest $10 billion, with $7.5 billion coming directly from SoftBank and the remaining $2.5 billion from other investors, including Microsoft, Thrive Capital, Altimeter Capital, and Coatue Management. An additional $30 billion is to be invested by the end of 2025, provided that OpenAI becomes a for-profit company.
SoftBank plans to fund the first $10 billion with loans from, among others, Mizuho Bank, it added. OpenAI closed its previous $6.6 billion funding round in October, valuing the company at $157 billion at the time. The new funding round, if successful, would nearly double the startup's valuation to $300 billion.
“OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve those goals,” Gil Luria, an analyst at DA Davidson & Co., told CNN.
The new funding is intended to accelerate AI research, expand computing infrastructure, and improve tools for ChatGPT’s 500 million users worldwide. OpenAI also plans to introduce its first open-weight model in years, which could lead to more advanced and accessible AI technologies.
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It is worth recalling that despite its high valuation, OpenAI is still operating at a loss – last year it recorded a loss of $5 billion on $3.7 billion in revenue. The company faces the challenge of transforming its organizational structure to meet investor expectations and maintain its position as a leader in the rapidly growing artificial intelligence market.
Prepared by JM
