OpenAI Now Worth $300 Billion After Massive $40B Funding Round

• OpenAI raises $40B, boosting valuation to $300B with SoftBank and other investors.
• SoftBank leads with $7.5B, while second tranche aims for $30B by 2025.
• OpenAI plans restructuring, with SoftBank reducing investment if not completed.

OpenAI completed its largest funding round yet, raising $40 billion. This new financing, including investments from SoftBank Group Corp. and other major venture capital firms, pushes the prominent AI company’s valuation to $300 billion. This marks a significant increase from its $157 billion valuation reported just last October 2024.

SoftBank will lead the overall investment, contributing an initial $7.5 billion in the first phase. An additional $2.5 billion comes from an investor syndicate that includes Microsoft Corp., Coatue Management, Altimeter Capital Management, and Thrive Capital. 

This substantial funding marks SoftBank’s continued strong commitment to advancing the AI industry globally. Its Chairman Masayoshi Son previously described AI as “a defining force shaping humanity’s future.”

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Further investment installments are scheduled for completion by the end of 2025 according to the deal structure. Of the remaining $30 billion to be raised in this second phase, SoftBank is slated to contribute $22.5 billion, while the syndicate provides the other $7.5 billion. This additional capital will support OpenAI’s ongoing research and development efforts, including its push to expand AI’s utility and integration into everyday applications.

What Restructuring Plans Accompany the Funding?

As a key part of the new funding agreement, OpenAI is set to undergo a major corporate restructuring, also planned for completion by the end of 2025.

This planned reorganization will legally separate the for-profit operating arm of the company, which currently governs its commercial business operations, from its original non-profit parent entity. While the full details of the restructuring remain confidential (“under wraps”), the change is expected to help OpenAI streamline its operations and allow potentially more flexibility in pursuing future commercial partnerships and ventures.

However, the funding deal includes an important stipulation tied to this restructuring. If OpenAI does not successfully complete the separation by the end of the year deadline, SoftBank retains the option to reduce its total funding contribution down to $20 billion from the initially pledged $30 billion total across both phases. 

Related: OpenAI Secures $6.6B in Funds; Can Decentralized AI Keep Up?

Should this happen, OpenAI might need to bring in additional outside investors to cover the funding difference.

In addition to SoftBank’s investment, other major players such as Magnetar Capital and Founders Fund have also discussed participating in the round. Magnetar Capital, a hedge fund based in Evanston, Illinois, could contribute as much as $1 billion, though details are yet to be finalized.