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OpenAI just raised another $40 billion round led by SoftBank

Mar 31, 2025 - theverge.com
OpenAI has secured a $40 billion investment round led by SoftBank, elevating its valuation to $300 billion, marking the largest funding round for a private tech company in history. The company will receive $10 billion upfront, with the remaining $30 billion contingent on its conversion to a for-profit entity by year-end. This funding follows OpenAI's announcement of Stargate, a $500 billion joint venture to develop AI datacenters, supported by SoftBank, Oracle, and the Abu Dhabi fund MGX. OpenAI's recent growth includes gaining 1 million users in an hour due to a new ChatGPT feature and plans to release a new language model soon.

Despite its rapid expansion and ChatGPT's 500 million weekly users, OpenAI is still not cash flow positive and anticipates reaching that milestone by 2029, with projected revenues of $125 billion. The company expects to earn $12.7 billion in revenue this year, a significant increase from last year's $3.7 billion. OpenAI's funding aims to advance its mission of developing AGI for the benefit of humanity, requiring substantial resources, including compute power, energy, and global infrastructure.

Key takeaways:

  • OpenAI has raised $40 billion in a new investment round led by SoftBank, bringing its valuation to $300 billion.
  • The funding is contingent on OpenAI converting into a for-profit company by the end of the year, or it risks losing a quarter of the deal.
  • OpenAI announced a $500 billion joint venture called Stargate to build AI datacenters, backed by SoftBank, Oracle, and the Abu Dhabi fund MGX.
  • Despite rapid growth and a projected $12.7 billion in revenue this year, OpenAI does not expect to be cash flow positive until 2029.
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