OpenAI has raised an impressive US$40 billion in one of the largest private funding rounds in history, pushing its valuation to US$300 billion post-money. The announcement was made on June 10, with SoftBank leading the investment, alongside existing backers Microsoft, Coatue, Altimeter, and Thrive.
A major boost for AI research and expansion
In a statement on its website, OpenAI said this funding will support AI research advancements, the expansion of its computing infrastructure, and the development of more powerful AI tools. Over 500 million people use ChatGPT every week, making OpenAI’s technology a key part of the AI landscape.
“[This new capital] enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week,” the company wrote. OpenAI also highlighted its partnership with SoftBank, noting that few companies have the expertise to scale transformative technology on such a large scale.
Investment fuels OpenAI’s Stargate project
A significant portion of this funding, approximately US$18 billion, will go towards OpenAI’s Stargate infrastructure project. This initiative aims to build a network of AI data centres across the United States, ensuring the company remains at the forefront of AI development.
CNBC, citing a source familiar with the deal, reported that Stargate is a critical component of OpenAI’s long-term vision. With this expansion, the company seeks to strengthen its position in the rapidly growing AI industry, offering enhanced AI services and capabilities.
With this latest investment round, OpenAI is set to accelerate its mission of pushing AI technology to new heights while maintaining a strong focus on accessibility and innovation.
