OpenAI Seeks $40B in New Funding From Investors
▼ Summary
– OpenAI is reopening a $40 billion funding round on July 28, seeking capital from new and existing investors, with SoftBank leading the round.
– The $40 billion round earlier this year valued OpenAI at $300 billion, with SoftBank committing 75% ($30 billion) and other investors contributing the remaining 25%.
– SoftBank’s investment could drop to $10 billion if OpenAI fails to restructure by year-end, as confirmed by WIRED.
– OpenAI has raised $63.92 billion since 2015, backed by major investors like Microsoft, and has a complex partnership with SoftBank on a $500 billion AI data center project.
– OpenAI’s proposed restructuring into a public benefit corporation (PBC) is key to SoftBank’s investment, with approval required by early next year.
OpenAI is reportedly in discussions with investors to secure an additional $40 billion in funding, marking one of the largest private fundraising efforts in tech history. Sources familiar with the matter indicate the round will officially reopen later this month, building on the company’s staggering $300 billion valuation achieved earlier this year.
The bulk of this funding comes from Japanese investment giant SoftBank, which committed to covering 75% of the total, though this could shrink to $10 billion if OpenAI fails to restructure its corporate framework by year’s end. The initial $10 billion tranche included $7.5 billion from SoftBank, with the remaining $2.5 billion pooled from other backers. Now, the AI firm aims to finalize the remaining $30 billion, with SoftBank contributing $22.5 billion and additional investors rounding out the balance.
Since its founding in 2015, OpenAI has raised nearly $64 billion, attracting heavyweight supporters like Microsoft, Andreessen Horowitz, and Nvidia. Its partnership with Microsoft remains particularly significant, with the tech giant supplying critical cloud infrastructure while gaining exclusive access to OpenAI’s most advanced models. However, recent reports suggest tensions have emerged between the two companies, complicating their once-seamless collaboration.
Beyond Microsoft, OpenAI has also teamed up with SoftBank on a $500 billion AI data center initiative, though disagreements over logistics and strategy have reportedly strained the relationship. OpenAI CEO Sam Altman has allegedly pursued independent deals for data center projects, bypassing SoftBank’s input, a move that could further test their alliance.
The company’s organizational structure has long been a subject of debate, drawing criticism from co-founder Elon Musk, who accused OpenAI of straying from its original mission of developing AI for humanity’s benefit. Musk’s lawsuit earlier this year alleged the firm had become a profit-driven entity serving Microsoft’s interests. In response, OpenAI proposed a revised governance model, shifting its for-profit subsidiary into a public benefit corporation (PBC) while keeping the nonprofit arm in control. This restructuring, pending regulatory approval, is a key condition for SoftBank’s continued investment.
As OpenAI navigates these financial and structural challenges, its ability to balance investor expectations with its founding principles will likely shape the future of artificial intelligence development. The outcome of this funding round could redefine not just the company’s trajectory but the broader AI industry’s landscape.
(Source: Wired)
