OpenAI is closing in on a $40 billion funding round led by SoftBank Group Corp. About this informs Bloomberg.
Investors Magnetar Capital, Coatue Management, Founders Fund and Altimeter Capital Management are also participating in the negotiations. This round demonstrates the high interest of investors in a company that is developing rapidly against the background of the global spread of artificial intelligence technologies.
According to the analytical company PitchBook, this funding could become the largest in history for a startup. OpenAI’s value after the deal could reach $300 billion, taking into account the investment raised, almost double the $157 billion estimate it had at the time of its previous fundraising in October.
As part of the agreement, SoftBank will invest $7.5 billion at the initial stage, another $2.5 billion will be contributed by a syndicate of investors, the source said. A second tranche of $30 billion is expected later this year: $22.5 billion will be provided by SoftBank, and another $7.5 billion will be provided by the syndicate. Separately, Japanese conglomerate SoftBank has committed billions of dollars to Stargate, a joint venture in Texas that partners OpenAI, Oracle Corp and MGX.
OpenAI expects the company’s revenue to more than triple last year to $12.7 billion in 2024 thanks to the development of paid AI products. In 2023, the profit was $3.7 billion. According to estimates, sales could grow to $29.4 billion by 2025.
Despite growing revenue, OpenAI faces high costs for the semiconductors, infrastructure, and staff needed to develop advanced AI solutions. According to the source, the company does not expect to be cash-flow positive before 2029, when its revenue is expected to exceed $125 billion.
