OpenAI reportedly looking to raise US$40B in new funding led by SoftBank

OpenAI, the maker of ChatGPT, is reportedly in discussions to raise up to US$40 billion (about S$54.28 billion) in a funding round led by SoftBank Group Corp, according to sources familiar with the matter.

According to The Edge Singapore, one of the sources said that the company is raising funds at a pre-money valuation of US$260 billion (S$352.84 billion). The company was valued at US$157 billion (S$213.06 billion) in October.

The Wall Street Journal earlier reported some details of the funding. However, neither OpenAI nor SoftBank has responded to requests for comment.

OpenAI and other leading AI companies have invested billions in data, talent, and infrastructure to develop more advanced AI systems. However, this approach has faced scrutiny after Chinese startup DeepSeek claimed to have created a competitive model at a much lower cost.

Bloomberg News reported that SoftBank is considering investing between US$15 billion (S$20.36 billion) and US$25 billion (S$33.93 billion) in OpenAI, which could make it the company’s largest investor.

Recently, OpenAI, Oracle, and SoftBank announced a US$100 billion (S$135.71 billion) joint venture to fund data centres and infrastructure projects across the US, aimed at supporting the development of advanced AI models. /TISG

Read also: OpenAI teams up with longevity start-up to extend human lifespan by up to 10 years

Featured image by Depositphotos