Generative AI company OpenAI has raised $40 billion in the largest-ever private tech funding round that values the business at $300bn.
Japan’s SoftBank will contribute $30bn, while the rest will be put in by Microsoft, Coatue, Altimeter, and Thrive. However, only $10bn is set to be invested immediately, with the remaining funds coming by the end of the year.
SoftBank could also withhold $10bn of its investment if ChatGPT-maker OpenAI doesn't restructure into a for-profit entity by December 31, a move that rival Elon Musk is trying to block in court.
Both OpenAI and SoftBank are behind Stargate, a purported $500bn effort to build AI data centers for training and inferencing AI.
OpenAI and SoftBank are reportedly each expected to invest $19bn in Stargate - although OpenAI's investment will likely come from the funds raised in this round from SoftBank.
The raise, which values the company at less than the $340bn it was believed to be targeting in February, comes after an executive reshuffle at the growing business.
COO Brad Lightcap is now expected to oversee “business and day-to-day operations," including infrastructure, while CEO Sam Altman will focus more on research and product.
Mark Chen has been named chief research officer, while Julia Villagra will become chief people officer.
