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OpenAI, the creator of ChatGPT, announced on Monday that its funding could reach $40 billion.
This capital is part of a new fundraising initiative for an artificial intelligence (AI) firm that has SoftBank Group as a key investor.
The Japanese investment conglomerate stated it agreed to finance OpenAI by mid-April, contingent upon AI firms transitioning to for-profit entities by year-end.
OpenAI CEO Sam Altman will present on February 3rd at a Tokyo event titled “Business business business via AI”. (Tomohiro Osumi / Getty Images)
Part of the investment ($10 billion) will have “co-investors,” with sources familiar with Reuters indicating that these investors will include Microsoft, Court Management, Altimeter Capital, and Flourishing Capital.
OpenAI will only receive up to $2 billion in funding from SoftBank if it does not transition to a for-profit organization.
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OpenAI mentioned that the agreement could result in a $300 billion “post-money” valuation. In terms of worth, it ranks higher than publicly traded entities such as fast-food giant McDonald’s and energy firm Chevron, which on Tuesday have market valuations exceeding $223 billion and $294 billion, respectively, positioning it among the most valuable private enterprises. As reported by Quartz.
The OpenAI logo is depicted in this illustration taken on May 20, 2024. (Photo by Dado Ruvic/Illustration/Reuters)
OpenAI stated that the $40 billion investment would “advance the frontier of AI research, enhance computing infrastructure, and provide increasingly powerful tools for the 500 million users who engage with ChatGPT weekly.”
SoftBank’s backing will assist us in the ongoing development of AI systems that facilitate scientific advancements, enable personalized learning, enhance human creativity, and lay the foundation for AGIs that benefit all of humanity,” stated the AI startup.
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The Japanese investment group disclosed that it has opted to collaborate with the Stargate Project, which has recently been inactive, to establish a “follow-on investment” in “Open Alli” and to further endorse OpenAI’s growth while recognizing the advantages of SBG’s NAV growth [net asset value].
OpenAI can only secure up to $2 billion in funding from SoftBank if it does not transition to for-profit status. (Charly Triballeau/AFP Via/Getty Images)
OpenAI has joined forces with SoftBank and Oracle to set up a network of data centers as part of the $500 billion Stargate initiative.
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Other companies such as Microsoft, Nvidia, MGX, and ARM are also part of the Stargate project.
SoftBank claims a “mission to achieve artificial superintelligence (ASI) for the benefit of humanity.” The company’s Vision 2 Fund has invested $2.2 billion in OpenAI since the fall as part of its efforts to realize this vision.
Reuters contributed to this report.
