OpenAI is making big bucks. The AI giant announced on Monday that it had closed a historic funding round amounting to an unbelievable $40 billion, the most ever raised by a private tech firm. The latest financing values the ChatGPT maker at $300 billion — nearly three times the amount previously raised by a private tech company, according to PitchBook.
The new funding comes with a catch from SoftBank — the funding round’s lead investor — that OpenAI will have to transform into a for-profit, otherwise the Japanese investment will be within its rights to cut their investment to as low as $20 billion.
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SoftBank led the funding round with $30 billion with participation from other backers, including core investor Microsoft as well as Coatue, Altimeter and Thrive.
In October 2024, OpenAI raised $6.6 billion, bringing its valuation to $157 billion. According to CNBC, OpenAI’s revenue is expected to triple to $12.7 billion in 2025 and has recorded 500 million weekly users on its popular AI offering ChatGPT.
CEO Sam Altman took to X on Monday to share his excitement about ChatGPT’s “viral” moments and its growth since its launch.
the chatgpt launch 26 months ago was one of the craziest viral moments i’d ever seen, and we added one million users in five days.
we added one million users in the last hour.
— Sam Altman (@sama) March 31, 2025
The gargantuan investment could significantly accelerate OpenAI’s research and development, enabling the creation of even more advanced AI models and technologies. It could also expand OpenAI’s capabilities, partnerships, and impact on industries ranging from healthcare to education, while driving innovation in AI safety and ethics.
About $18 billion of the funding is expected to be used for OpenAI’s commitment to Stargate, a person familiar with the matter told CNBC.
What is Stargate?
The Stargate Project is a significant initiative involving OpenAI, SoftBank, Oracle, and MGX, with plans to invest up to $500 billion in AI infrastructure across the U.S. by 2029. Announced in January 2025, this project aims to solidify American leadership in artificial intelligence, create hundreds of thousands of jobs, and stimulate economic growth.
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One of the project’s key components is the construction of a large data center in Abilene, Texas, slated to deploy 64,000 Nvidia GB200 GPUs by 2026 to support advanced AI tasks. OpenAI is also evaluating additional sites across the country to expand its infrastructure further.
This effort has attracted significant investment, with a $40 billion funding round led by SoftBank, bringing OpenAI’s valuation to $300 billion. The Stargate Project represents a transformative push in AI, positioning OpenAI and its partners to reshape technological advancements and the economy on a global scale.