HomeOpenAI Secures $40B Funding from SoftBank
OpenAI has just snagged a whopping $40 billion in a new funding round, with SoftBank leading the charge. This massive injection of cash has bumped the company's valuation up to a staggering $300 billion, making it the biggest funding round ever for a private tech company, according to CNBC.
Here's how it breaks down: SoftBank is throwing in $7.5 billion, and another $2.5 billion is coming from a group of investors, as Bloomberg reported. But there's a catch—the remaining $30 billion won't hit the bank until the end of the year, and only if OpenAI officially becomes a for-profit company by then. If that doesn't happen, they could lose a quarter of the deal, CNBC noted.
This funding news comes hot on the heels of OpenAI's announcement about Stargate, a $500 billion project backed by SoftBank, Oracle, and the Abu Dhabi fund MGX. They're planning to build huge AI datacenters over the next four years. The company's been on a roll lately. Just this Monday, CEO Sam Altman shared that OpenAI added a million users in just one hour, thanks to a new feature called Images in ChatGPT. This feature went viral because it can create AI art inspired by Studio Ghibli. And on Wednesday, Altman announced they're working on a new open-weight language model with reasoning capabilities, set to be released soon. The funding announcement also mentioned that ChatGPT now serves 500 million people every week.
Related
- Sam Altman’s Stargate is science fiction
- OpenAI reshuffles Sam Altman’s job once again
Despite the incredible growth driven by ChatGPT, OpenAI is still burning through cash like there's no tomorrow. Bloomberg reported that the company is expecting to rake in $12.7 billion this year, a huge leap from last year's $3.7 billion in annualized recurring revenue. But, they're not expecting to be cash flow positive until 2029, when they project to hit $125 billion in revenue.
OpenAI's funding announcement stressed their mission to build "AGI that benefits all of humanity." Altman has been upfront about what it'll take to make this happen—massive amounts of computing power, energy, global infrastructure, and, of course, a ton of money. This latest round of funding, they say, brings them one step closer to that goal.
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Comments (24)
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![MichaelThomas]()
$40 billion from SoftBank? That's like printing money at this point 🤯. I'm curious if this will speed up AGI or just inflate the AI bubble even more. Either way, Nvidia's stock is probably popping champagne right now 🥂.
![WalterNelson]()
Wow, $40B is an insane amount of money! 😳 It really shows how much faith investors have in AI's future, but honestly, it also makes me a bit nervous. With so much capital concentrated in one company, will it stifle innovation from smaller players? Hope OpenAI uses this responsibly and doesn't just chase profit.
![JonathanAllen]()
Ces investissements démesurés dans l'IA commencent à m'inquiéter... Où va tout cet argent ? Et si on parlait un peu plus d'éthique et de régulation ? 😕
![BrianLewis]()
Wow, $40B from SoftBank? OpenAI’s valuation hitting $300B is wild! 🚀 This kind of cash could supercharge AI development, but I’m curious—will it go to groundbreaking research or just fancier offices? 😄
![GeorgeTaylor]()
OpenAI conseguir 40 bilhões de dólares da SoftBank é surreal! É uma quantia de dinheiro insana. Fico curioso para saber o que eles estão planejando. Espero que usem bem! 🤔
![BillyWilson]()
오픈AI가 소프트뱅크에서 400억 달러를 조달했다고? 정말 미쳤어! 지금 평가액이 3000억 달러야. AI가 미래인 건 알겠는데, 이렇게 많은 돈이 오가는 게 좀 무섭네. 현명하게 써주길! 🚀
OpenAI has just snagged a whopping $40 billion in a new funding round, with SoftBank leading the charge. This massive injection of cash has bumped the company's valuation up to a staggering $300 billion, making it the biggest funding round ever for a private tech company, according to CNBC.
Here's how it breaks down: SoftBank is throwing in $7.5 billion, and another $2.5 billion is coming from a group of investors, as Bloomberg reported. But there's a catch—the remaining $30 billion won't hit the bank until the end of the year, and only if OpenAI officially becomes a for-profit company by then. If that doesn't happen, they could lose a quarter of the deal, CNBC noted.
This funding news comes hot on the heels of OpenAI's announcement about Stargate, a $500 billion project backed by SoftBank, Oracle, and the Abu Dhabi fund MGX. They're planning to build huge AI datacenters over the next four years. The company's been on a roll lately. Just this Monday, CEO Sam Altman shared that OpenAI added a million users in just one hour, thanks to a new feature called Images in ChatGPT. This feature went viral because it can create AI art inspired by Studio Ghibli. And on Wednesday, Altman announced they're working on a new open-weight language model with reasoning capabilities, set to be released soon. The funding announcement also mentioned that ChatGPT now serves 500 million people every week.
Related
- Sam Altman’s Stargate is science fiction
- OpenAI reshuffles Sam Altman’s job once again
Despite the incredible growth driven by ChatGPT, OpenAI is still burning through cash like there's no tomorrow. Bloomberg reported that the company is expecting to rake in $12.7 billion this year, a huge leap from last year's $3.7 billion in annualized recurring revenue. But, they're not expecting to be cash flow positive until 2029, when they project to hit $125 billion in revenue.
OpenAI's funding announcement stressed their mission to build "AGI that benefits all of humanity." Altman has been upfront about what it'll take to make this happen—massive amounts of computing power, energy, global infrastructure, and, of course, a ton of money. This latest round of funding, they say, brings them one step closer to that goal.
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$40 billion from SoftBank? That's like printing money at this point 🤯. I'm curious if this will speed up AGI or just inflate the AI bubble even more. Either way, Nvidia's stock is probably popping champagne right now 🥂.
Wow, $40B is an insane amount of money! 😳 It really shows how much faith investors have in AI's future, but honestly, it also makes me a bit nervous. With so much capital concentrated in one company, will it stifle innovation from smaller players? Hope OpenAI uses this responsibly and doesn't just chase profit.
Ces investissements démesurés dans l'IA commencent à m'inquiéter... Où va tout cet argent ? Et si on parlait un peu plus d'éthique et de régulation ? 😕
Wow, $40B from SoftBank? OpenAI’s valuation hitting $300B is wild! 🚀 This kind of cash could supercharge AI development, but I’m curious—will it go to groundbreaking research or just fancier offices? 😄
OpenAI conseguir 40 bilhões de dólares da SoftBank é surreal! É uma quantia de dinheiro insana. Fico curioso para saber o que eles estão planejando. Espero que usem bem! 🤔
오픈AI가 소프트뱅크에서 400억 달러를 조달했다고? 정말 미쳤어! 지금 평가액이 3000억 달러야. AI가 미래인 건 알겠는데, 이렇게 많은 돈이 오가는 게 좀 무섭네. 현명하게 써주길! 🚀
