OpenAI, the artificial intelligence company known for its ChatGPT product, announced on Monday that it has secured up to $40 billion in new funding. This financing is part of a fundraising round led by SoftBank Group, which has committed to invest $10 billion in mid-April and an additional $30 billion in December, contingent on OpenAI transitioning to a for-profit model by year-end.
The first $10 billion will be shared with co-investors, including notable firms such as Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. Should OpenAI not meet the conditions for the full investment, it will only receive a maximum of $20 billion from SoftBank.
Following this funding agreement, OpenAI's post-money valuation is estimated at $300 billion, positioning it above major public companies like McDonald's and Chevron. The company has indicated that this capital will enable it to advance AI research, enhance its computational infrastructure, and provide improved tools for its user base of 500 million weekly ChatGPT users.
SoftBank's investment is part of a broader initiative, the "Stargate Project," aimed at establishing a network of data centers to support AI workloads in the U.S. The project includes collaborations with Oracle and other technology firms such as Nvidia and Arm.
SoftBank has expressed its commitment to advancing artificial intelligence with a goal of achieving Artificial Super Intelligence for the benefit of humanity. This funding round marks a significant step in OpenAI's growth trajectory and its ongoing development of AI technologies.