OpenAI Pursues $40 Billion Funding Amid Market Competition
OpenAI, the creator of ChatGPT, is reportedly seeking $40 billion in new funding, aiming to elevate its valuation to $340 billion. According to the Wall Street Journal, Japan's SoftBank is leading this funding effort, negotiating an investment of between $15 billion and $25 billion. This potential investment would mark SoftBank's largest backing of OpenAI.
The funding drive comes on the heels of market disruption caused by Chinese startup DeepSeek, which recently launched a competitive chatbot developed at a significantly lower cost compared to U.S. counterparts. As reported by the Financial Times, the funding plan follows OpenAI's previous round completed just three months ago, which valued the company at $157 billion.
The new funds would aid OpenAI in fulfilling its $18 billion commitment to the Stargate initiative announced by former President Donald Trump, intended to bolster artificial intelligence infrastructure in the U.S. SoftBank’s investment may exceed $40 billion as it continues to pivot towards AI technologies. Shares of SoftBank rose by 3% following these reports.
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