OpenAI’s $40 billion power play

The largest private tech deal in history

Image credit: Pixabay and Canva

OpenAI has secured a record-breaking $40 billion funding round, valuing the company at $300 billion.

Here are a few key points:

• The round is led by SoftBank, contributing $30 billion, with additional backing from Microsoft, Coatue, Altimeter, and Thrive.

• The funding will support AI research and computing infrastructure, including an $18 billion investment in the Stargate project.

• However, SoftBank's commitment may drop to $20 billion if OpenAI does not transition to a for-profit entity by the end of 2025, a move requiring approval from Microsoft and regulatory authorities.

• ChatGPT's user base has grown to 500 million weekly users, and OpenAI expects revenue to triple to $12.7 billion this year.

• The broader AI market is projected to surpass $1 trillion in revenue within a decade.

• Meanwhile, CEO Sam Altman is shifting focus to research and product development, while COO Brad Lightcap will oversee daily operations.

• Investors anticipate OpenAI's eventual IPO amid heightened competition in the AI space.

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