OpenAI in Talks to Raise $40 Billion in Funding Round Led by SoftBank
ChatGPT creator OpenAI is reportedly in discussions to raise a substantial $40 billion in a funding round headed by SoftBank Group Corp. Sources close to the matter have revealed that the company is aiming for a pre-money valuation of $260 billion, significantly higher than its previous valuation of $157 billion in October.
The significant investment will bolster OpenAI's commitment to developing advanced AI systems, particularly in the wake of competition from DeepSeek, a Chinese AI upstart that claims to have created a comparable model at a fraction of the cost.
SoftBank is reportedly considering a substantial investment of between $15 billion and $25 billion, potentially becoming the largest backer of OpenAI. Last week, the three companies announced a joint venture valued at $100 billion to invest in data centers and infrastructure to support OpenAI's AI advancement efforts.
OpenAI and SoftBank have yet to comment on the funding round, adding further intrigue to the ongoing negotiations.