OpenAI Eyes $40 Billion in Funding: SoftBank Poised to Overtake Microsoft as Top Backer in AI Power Play

OpenAI, a prominent player in the artificial intelligence sector, is reportedly in discussions for a new funding round that could raise up to $40 billion, potentially elevating the company’s valuation to $340 billion. This significant move is expected to position SoftBank, led by founder Masayoshi Son, as a major investor, with an infusion ranging between $15 billion and $25 billion, surpassing Microsoft as OpenAI's leading financial backer.

The funds raised during this round are speculated to partially fund OpenAI's commitment to the Stargate initiative, a joint venture with SoftBank and Oracle focusing on U.S. AI infrastructure. The initiative, announced recently, aims to invest billions into developing AI resources within the country.

OpenAI's continued growth and interest in the generative AI field were significantly accelerated with the launch of the ChatGPT chatbot in late 2022, a key driver in the company’s momentum. The previous funding round concluded with $6.6 billion raised, indicating a burgeoning competition landscape involving industry heavyweights like Elon Musk’s xAI, Microsoft, Google, Amazon, and Anthropic.

Concurrently, the U.S. AI market landscape is witnessing an emerging contender in DeepSeek, a Chinese startup making significant strides. DeepSeek's application recently topped the Apple App Store charts in the U.S., attracting attention due to its lower model training costs compared to American competitors, highlighting a burgeoning market competition.

At a recent Washington, D.C. event, OpenAI CEO Sam Altman acknowledged DeepSeek’s advancements, emphasizing the high level of competition and the critical nature of advancements in AI technology. His remarks also reflected the growing interest in reasoning capabilities and open-source AI.