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OpenAI lands historic $40 billion investment led by SoftBank, hits $300 billion valuation amid AI boom

Apr 01, 2025 - businesstoday.in
OpenAI has secured a record-breaking $40 billion funding round led by SoftBank, elevating its valuation to $300 billion. The deal includes an immediate $10 billion, with $7.5 billion from SoftBank and $2.5 billion from other investors, while the remaining $30 billion is contingent on OpenAI's transition to a for-profit model. This investment supports OpenAI's $500 billion Stargate initiative, a collaboration with Oracle, Abu Dhabi’s MGX, and SoftBank to develop high-performance datacentres over four years. OpenAI's public appeal remains strong, with CEO Sam Altman announcing that ChatGPT gained one million users in an hour, driven by a new 'Images' feature.

Despite its rapid growth, OpenAI is still operating at a loss, with projected revenue of $12.7 billion this year, up from $3.7 billion in 2024. The company does not expect to be cash-flow positive until 2029, when it anticipates annual revenue will reach $125 billion. Altman also hinted at the upcoming release of a new open-weight language model with reasoning capabilities. ChatGPT currently serves 500 million users weekly, showcasing its significant impact since its launch just over two years ago.

Key takeaways:

  • OpenAI has secured a $40 billion funding round led by SoftBank, raising its valuation to $300 billion, marking the largest private tech funding round in history.
  • The funding includes an immediate $10 billion, with $7.5 billion from SoftBank and $2.5 billion from other investors, while the remaining $30 billion is contingent on OpenAI's transition to a for-profit model.
  • OpenAI's new 'Images' feature for ChatGPT, allowing users to generate Studio Ghibli-style art, has contributed to a rapid increase in users, with one million new users in a single hour.
  • OpenAI is projected to generate $12.7 billion in revenue this year, with expectations to become cash-flow positive by 2029, aiming for an annual revenue of $125 billion.
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