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OpenAI closes $40 billion funding round, largest private tech deal on record

Mar 31, 2025 - cnbc.com
OpenAI has closed a record-breaking $40 billion private tech funding round, valuing the company at $300 billion. This makes it one of the most highly valued private companies globally, alongside SpaceX and ByteDance. The funding round, led by SoftBank with a $30 billion contribution, includes investors like Microsoft, Coatue, Altimeter, and Thrive. OpenAI plans to use the funds to advance AI research and expand its computing infrastructure. A significant portion, $18 billion, is earmarked for the Stargate joint venture with SoftBank and Oracle. However, the funding is contingent on OpenAI restructuring into a for-profit entity by the end of the year, a move that requires approval from Microsoft and the California Attorney General and faces legal challenges from Elon Musk.

OpenAI's ChatGPT has seen explosive growth, reaching 500 million weekly users, and the company expects its revenue to triple to $12.7 billion by year-end. CEO Sam Altman is shifting focus from daily operations to research and product development, with COO Brad Lightcap taking on more operational responsibilities. The generative AI market is projected to exceed $1 trillion in revenue within a decade, with companies like Google, Amazon, Anthropic, and Perplexity competing in the space. OpenAI's fundraising follows CoreWeave's challenging public debut, and investors anticipate OpenAI's potential IPO in the future.

Key takeaways:

  • OpenAI announced a record-breaking $40 billion private tech funding round, valuing the company at $300 billion.
  • The funding round is led by SoftBank with $30 billion, alongside Microsoft, Coatue, Altimeter, and Thrive.
  • OpenAI plans to use the funds to advance AI research and scale its compute infrastructure, with $18 billion allocated to the Stargate joint venture.
  • OpenAI's restructuring into a for-profit entity is necessary to avoid a $10 billion reduction in funding, requiring approval from Microsoft and the California Attorney General.
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