STORY: OpenAI says it will raise $40 billion in new funding to help drive research.
The ChatGPT maker said Monday the new fundraising round would be led by SoftBank.
A Reuters source said the giant Japanese tech investor would provide 75% of the money, with the rest coming from Microsoft and other investment groups.
The deal values OpenAI at $300 billion.
That’s nearly double the price tag put on the outfit in a funding round late last year.
OpenAI says it will use the new funds to drive research and develop powerful new tools.
It’s partnering with SoftBank and Oracle to develop a network of data centers under the $500 billion Stargate project.
That’s aimed at powering AI services in the U.S.
A Reuters source says OpenAI must complete its transition to a for-profit company by the end of the year to secure the full amount of funding from SoftBank.
It was originally established as a non-profit organisation, but says that has to change given its need to raise huge amounts of money from investors.
The latest fundraising makes it among the most valuable private companies worldwide, alongside the likes of Elon Musk’s SpaceX and China’s ByteDance, the owner of TikTok.