OpenAI Closes Record-Breaking $40B Round at $300B Valuation
OpenAI has grown into one of the most influential companies in the global tech landscape.
Company Name: OpenAI
Location: San Francisco, CA
Industry: Generative AI / Foundation Models
Funding Details:
- Amount: $40 billion
- Valuation: $300 billion post-money
- Investors:
- Lead: SoftBank ($30B)
- Participants: Microsoft, Coatue, Altimeter, Thrive Capital
- Structure: Convertible notes; $18B earmarked for Stargate compute infra
- Contingency: SoftBank’s investment could be reduced to $20B unless OpenAI restructures into a for-profit entity by Dec. 31, 2025
Purpose of Investment:
- Advance frontier AI research
- Expand compute infrastructure
- Fund Stargate, a joint venture with SoftBank and Oracle
- Navigate restructuring to a for-profit entity
Leadership:
- CEO: Sam Altman
Product:
OpenAI is the creator of ChatGPT, Claude competitor GPT-4, and a suite of APIs powering the AI boom. With a hybrid nonprofit-for-profit model, OpenAI’s capped-profit LP structure allows for mission alignment while attracting large-scale capital.
About Company:
Founded in 2015 as a nonprofit AI research lab, OpenAI has grown into one of the most influential companies in the global tech landscape. Its tools, including ChatGPT and DALL·E, are used by hundreds of millions globally. With this $40B round—the largest in private tech history—OpenAI cements its position as a frontrunner in the race to build safe, general-purpose AI.
Note: The funding round and planned corporate restructuring are under scrutiny and may require approval from Microsoft and California's Attorney General, while also facing legal challenges from co-founder Elon Musk.
