OpenAI Raises $40 Billion in Investment from ‘Investor Syndicate’ to Build AGI

In its latest funding round, OpenAI has raised $40 billion from a group of investors led by SoftBank, valuing the AI ​​developer at $300 billion. This is the largest funding round ever for a private tech company, CNBC reports.

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OpenAI will receive $10 billion up front, $7.5 billion of which will come from SoftBank and $2.5 billion from a “syndicate of investors.” The remaining $30 billion will be transferred by the end of the year, provided that OpenAI reorganizes and becomes a commercial company by then. Otherwise, the deal size will be cut by a quarter.

In January, OpenAI announced Stargate, a $500 billion joint venture backed by SoftBank, Oracle, and Abu Dhabi-based MGX to build a network of giant AI data centers over the next four years. The company is on a roll: CEO Sam Altman said yesterday that the platform had attracted 1 million users in just an hour thanks to ChatGPT’s Images feature, which went viral for its ability to generate Studio Ghibli-style images. OpenAI plans to release a powerful, open-weighted, large-scale language model in the coming months. OpenAI’s services have 500 million weekly users, according to a funding round.

Despite the rapid growth due to ChatGPT, the company still has colossal expenses. By the end of the current year, it plans to receive $12.7 billion in revenue, up from $3.7 billion last year. The company plans to achieve positive cash flow in 2029, when its revenue will reach $125 billion. During the funding round, OpenAI once again announced the goal of its work – “creating strong AI (AGI) that will benefit all of humanity.” To achieve this goal, the company will need significant computing and energy resources, global infrastructure, and a lot of money, Sam Altman made it clear.