OpenAI has officially completed a historic $40 billion AI fundraising round, with its valuation rising to $300 billion post-funding.
This fundraising round is led by SoftBank, with participation from Microsoft, hedge funds Coatue, Altimeter, and Thrive.
Valuation Doubles, OpenAI Becomes $300 Billion Top Enterprise
According to Bloomberg, OpenAI’s valuation was $157 billion as of October last year. Following the fundraising, it has directly doubled to $300 billion.
In response, CEO Sam Altman stated: “Hundreds of millions of people use ChatGPT every week globally; this funding will help us bring AI closer to people’s daily lives.”
Led by SoftBank, Other Venture Capitals Follow Suit
The fundraising occurs in two phases. Below is the first phase, with funds to be available immediately:
- SoftBank contributes $7.5 billion.
- The remaining $2.5 billion is provided by the investment alliance, including Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital.
Below is the second phase, to be completed by the end of 2025:
- SoftBank plans to add another $22.5 billion.
- The alliance will contribute an additional $7.5 billion.
In total, the second wave of investment reaches $30 billion.
Key Condition for Fundraising: OpenAI’s Restructuring and De-Nonprofitization by Year-End
This fundraising comes with a key condition: OpenAI must complete its company restructuring by year-end, separating its profit-making division from its current nonprofit governance. If not completed by the end of the year, OpenAI will face the following penalties:
- SoftBank has the right to reduce its total committed investment from $30 billion to $20 billion.
- OpenAI must seek additional investors to fill the gap.
The company is currently planning the restructuring process internally but has not disclosed details to the outside world.
Who is Funding SoftBank? Major Players Include Mizuho Bank and Other Financial Institutions
According to SoftBank’s official documents, the funding will be completed through joint financing from Mizuho Bank and other financial institutions.
SoftBank Chairman Masayoshi Son also stated in a statement: “AI will be the key force for humanity’s future. Our expanded cooperation with OpenAI is aimed at realizing this vision more quickly.”
Silicon Valley Backers Eager to Enter
In addition to the confirmed investors, several Silicon Valley heavyweights are also looking to join, including:
- Founders Fund: Founded by Silicon Valley venture capital pioneer Peter Thiel, it holds stakes in Facebook, SpaceX, Palantir, Airbnb, Stripe, OpenAI, and Anduril.
- Magnetar Capital: An Illinois hedge fund rumored to potentially invest $1 billion.
The aforementioned investments are still under negotiation and are not included in the officially announced total fundraising amount.
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