OpenAI Secures $40 Billion in New Funding, Eyes Bold Leap Toward AGI as Valuation Hits $300 Billion

San Francisco: Artificial intelligence powerhouse OpenAI has confirmed a monumental $40 billion funding round led by Japan’s SoftBank Group, catapulting its post-money valuation to an impressive $300 billion. This marks a near-doubling of the company’s worth since its last funding round in October, which had valued the company at $157 billion.

The funding is intended to supercharge OpenAI’s mission to develop advanced AI technologies, including Artificial General Intelligence (AGI), and scale up its infrastructure to meet growing global demand. The deal, one of the largest ever in the AI sector, solidifies OpenAI’s place among the world’s most valuable private tech companies, alongside names like SpaceX and ByteDance.

A Strategic Split in SoftBank’s Investment

SoftBank will contribute up to $30 billion of the total $40 billion, while syndicating the remaining $10 billion to other investors, including Microsoft, Coatue Management, Thrive Capital, and Altimeter Capital. However, the final figure from SoftBank is contingent upon OpenAI restructuring into a for-profit entity by the end of 2025. If this shift does not occur, SoftBank’s total investment could be reduced to $20 billion.

SoftBank has already committed $10 billion to be released in mid-April, with the remaining $30 billion planned for December—again, conditional on OpenAI’s legal transition.

Fueling Next-Gen AI Tools and Infrastructure

OpenAI will use the funds to expand its computing capacity, support scientific research, and deliver more powerful AI applications. Central to this vision is the continued development of ChatGPT, which already serves 500 million users weekly, making it one of the most widely adopted generative AI tools globally.

The company also aims to support educational technologies, enterprise AI tools, and research projects that bring humanity closer to AGI—a goal it has publicly championed since its inception.

Additionally, the investment ties into SoftBank’s broader AI infrastructure ambitions, especially the $500 billion Stargate initiative launched earlier this year. Under this project, OpenAI and SoftBank, in collaboration with Oracle, aim to establish a U.S.-based network of AI-optimized data centers.

To unlock the full funding potential, OpenAI plans to transition into a public benefit corporation—a move designed to balance investor interests with long-term societal impact. This structure would allow it to continue attracting large-scale investments while aligning with its ethical mission to develop AI responsibly.

While the fundraising round demonstrates strong investor confidence, some analysts express caution. Gil Luria of D.A. Davidson noted, “OpenAI has very ambitious plans on many fronts and needs a lot of capital to achieve these goals. But the number of investors capable and willing to support that scale may be limited.”

Rising Investor Appetite for AI

The announcement comes at a time of surging investor enthusiasm in the AI space. Companies and venture capitalists worldwide are racing to back promising AI platforms, spurred by the commercial success of chatbots, AI assistants, and enterprise automation tools. OpenAI’s rapid growth and massive user base have made it a prime beneficiary of this trend.

Its recent partnerships including with NatWest Group for AI-driven banking solutions and Nubank for fraud detection and enterprise search highlight its growing influence beyond tech into financial services and more.