OpenAI, the San Francisco-based artificial intelligence (AI) research company renowned for developing ChatGPT, has announced a significant funding achievement. The firm has secured $40 billion in a new funding round led by SoftBank Group, elevating its valuation to $300 billion.
“Today we’re announcing new funding—$40 billion at a $300 billion post-money valuation, which enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week.” OpenAI wrote in the blog post on the company’s website.
“We’re excited to be working in partnership with SoftBank Group—few companies understand how to scale transformative technology like they do. Their support will help us continue building AI systems that drive scientific discovery, enable personalized education, enhance human creativity, and pave the way toward AGI that benefits all of humanity.”
The funding round was predominantly financed by SoftBank, contributing 75% of the total investment. The remaining 25% was sourced from a consortium of investors, including Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. The investment is structured to provide an initial $10 billion, with an additional $30 billion contingent upon OpenAI’s transition to a for-profit entity by the end of the year. This structural change is a prerequisite set by the investors to mitigate risks associated with OpenAI’s current non-profit status.
Sam Altman, CEO of OpenAI, expressed optimism about the funding’s potential to advance AI’s integration into everyday life. He highlighted plans to release an open-weights AI model, aiming to make the technology more accessible and affordable. This initiative marks a departure from OpenAI’s previous subscription-based approach and responds to competitive pressures from other AI startups.
The substantial investment reflects a broader trend in the venture capital landscape, with a pronounced focus on AI technologies. In the first quarter of 2025, U.S. venture capital investments surged to $91.5 billion—a 116% increase from the same period in 2024. Notably, 71% of this capital was directed toward AI firms, highlighting the sector’s growing prominence.
OpenAI’s transition to a for-profit structure is not without challenges. The company faces a deadline to complete this restructuring by the end of the year to secure the full funding amount. Failure to do so could result in a loss of $20 billion from the total investment. This condition underscores the investors’ emphasis on a governance structure that aligns with their financial interests and risk management strategies.
The influx of capital is earmarked for several strategic initiatives. OpenAI plans to enhance its computational infrastructure, support ongoing AI research, and develop tools to serve its expanding user base. Currently, ChatGPT boasts 500 million weekly users, reflecting the widespread adoption of OpenAI’s technologies.
In addition to internal developments, OpenAI is collaborating with SoftBank and Oracle on the Stargate project, a $500 billion initiative aimed at establishing data centers for AI workloads in the United States. This project signifies OpenAI’s commitment to bolstering the infrastructure necessary for advanced AI applications.
The AI sector’s rapid growth has attracted significant attention from investors and industry observers alike. Firms such as Felicis and Lightspeed Venture Partners have concentrated new investments in emerging AI technologies, contributing to larger deal sizes and higher valuations. This competitive environment underscores the intense focus on AI as a transformative force across various industries.
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