OpenAI, the company behind ChatGPT, is close to finalizing a $40 billion funding round led by SoftBank (SFTBY), according to Bloomberg. This deal would push OpenAI’s valuation to $300 billion, up from $157 billion. If completed, it would rank among the largest private company investments ever.
As part of the deal, SoftBank plans to invest $7.5 billion initially, alongside $2.5 billion from a syndicate of investors, according to sources familiar with the talks. A second round of $30 billion is expected later this year, with SoftBank contributing $22.5 billion and another $7.5 billion coming from the syndicate.
If the deal goes through successfully, SoftBank could surpass Microsoft (MSFT) as OpenAI’s top investor, deepening the connection between OpenAI CEO Sam Altman and SoftBank’s Masayoshi Son.
Heavyweights Back OpenAI’s AI Push
SoftBank isn’t the only one betting big on OpenAI. The funding round is expected to include heavyweights like Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital.
Reportedly, Illinois-based hedge fund Magnetar Capital alone is eyeing a $1 billion investment, showing strong confidence in OpenAI’s future.
OpenAI Eyes Massive Revenue Growth
At the same time, OpenAI is gearing up for significant revenue expansion. The company expects to triple its revenue this year to $12.7 billion, according to a Bloomberg report. In 2024, it generated $3.7 billion, fueled by its growing subscription services for both individuals and businesses.
Looking ahead, OpenAI aims to reach nearly $30 billion in annual revenue by 2026.
SoftBank Doubles Down on AI
SoftBank has been aggressively expanding in AI. Earlier this month, it announced plans to borrow $16 billion for AI investments, with an option for another $8 billion in 2026. It has also committed $15 billion to Stargate, a joint venture with OpenAI and Oracle (ORCL) aimed at strengthening U.S. AI infrastructure.
With this latest investment in OpenAI, SoftBank is cementing its role as a dominant force in the AI race.
Who Is the Biggest Investor in OpenAI?
So far, Microsoft and SoftBank have emerged as the two largest investors in OpenAI. We used the TipRanks Stock Comparison tool to compare their performance. Investors who seek to gain exposure to OpenAI can do so by investing in one of these companies after thorough research.
