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OpenAI Reportedly Nearing Completion of Substantial Funding Initiative
As the tech world explores OpenAI’s novel image generation capabilities alongside tools like ChatGPT, sources indicate the artificial intelligence research and deployment company is on the verge of finalizing a significant capital infusion. A new funding round, reportedly led by SoftBank, is anticipated to reach $40 billion, according to a Bloomberg report.
Key Investors in the Funding Round
Alongside SoftBank, several prominent investment entities are reportedly engaged in discussions to participate in this funding initiative. These firms, as detailed in the Bloomberg report, include hedge fund Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management. Magnetar Capital is purportedly considering a substantial investment of $1 billion.
Investment Breakdown and Tranches
According to sources cited by Bloomberg, SoftBank’s initial contribution is projected to be $7.5 billion, augmented by an additional $2.5 billion from a consortium of investors. A subsequent phase of investment is expected later in the year, wherein the Japanese conglomerate is poised to inject a further $22.5 billion, with a syndicated investment of $7.5 billion supplementing this tranche.
Soaring Valuation for AI Company
OpenAI’s previous funding round in October 2024, led by Thrive Capital, amassed $6.6 billion at a $157 billion valuation. The latest report from Bloomberg suggests this new substantial investment round will elevate the company’s valuation to an impressive $300 billion, marking a considerable increase in its market worth.