Companies

OpenAI In Talks For New Funding At Up To $300 Billion Value

Published January 31, 2025

OpenAI is currently engaging in discussions to secure a funding round that could reach up to $40 billion. This funding round is expected to be led by SoftBank Group Corp..

Potential Valuation Details

Insiders suggest that OpenAI is looking to raise this capital at a pre-money valuation of $260 billion. If the company successfully secures the full amount, this would result in a post-money valuation of $300 billion. To provide context, OpenAI's valuation stood at $157 billion back in October.

Market Competition

As OpenAI and other leading AI firms ramp up investments in technology, data acquisition, workforce hiring, and physical infrastructure, recent developments have raised questions about the sustainability of such expenditures. A notable challenger, DeepSeek, recently unveiled an AI model that it asserts was developed at a significantly lower cost than OpenAI's offerings.

Funding Insights

Previous reports have indicated that SoftBank is contemplating a financial commitment ranging from $15 billion to $25 billion, which could position it as the largest investor in OpenAI.

Collaborative Ventures

Recently, OpenAI joined forces with SoftBank and Oracle to establish a venture that aims to invest $100 billion in data centers and other infrastructure projects throughout the United States. This initiative is designed to support the development of OpenAI's next-generation AI models.

Competitors in AI Space

Following advancements from DeepSeek, another competitor, Alibaba, has announced a new AI model, claiming it has surpassed OpenAI's famed GPT-4.

funding, valuation, AI