OpenAI is in discussions to raise up to $40 billion in a new funding round that could push its valuation to as high as $340 billion. SoftBank is expected to lead the investment, contributing between $15 billion and $25 billion, surpassing Microsoft as OpenAI’s largest backer. The talks are ongoing, with part of the funding potentially allocated to Stargate, a joint AI infrastructure venture between SoftBank, OpenAI, and Oracle.
OpenAI, which launched ChatGPT in late 2022 and sparked the generative AI boom, was last valued at $157 billion by private investors. The company raised $6.6 billion in October as it prepared to compete more aggressively with rivals such as xAI, Microsoft, Google, Amazon, and Anthropic. The latest funding would significantly bolster OpenAI’s resources as it continues its rapid expansion in artificial intelligence.
The emergence of new competitors, particularly from China, is adding pressure to the AI race. DeepSeek, a Chinese AI startup, has recently surged in popularity, with its model reportedly developed at a fraction of the cost of its U.S. counterparts. The company’s app climbed to the top of Apple’s App Store rankings, sparking concerns in the U.S. AI market.
Speaking at an event in Washington, D.C., OpenAI CEO Sam Altman acknowledged DeepSeek’s capabilities, calling it a “great model” and emphasizing the growing competition in the field. He noted that the rise of powerful AI models underscores the importance of ensuring democratic AI leadership and highlights the increasing interest in reasoning-based AI and open-source models.
As OpenAI seeks additional funding, the company remains at the forefront of artificial intelligence development. The new investment could provide the resources needed to strengthen its AI infrastructure and maintain a competitive edge against emerging global challengers. With rapid advancements in AI technology and intensified competition, the company’s next moves will shape the future of the industry.
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