SoftBank Group SFTBF SFTBY is reportedly in discussions to spearhead a new funding round for OpenAI, potentially raising up to $40 billion.
What Happened: This investment would value the ChatGPT-maker at $300 billion, marking a record-setting funding round for a private entity, reported Reuters, citing sources.
As per the report, SoftBank assessed OpenAI’s value at $260 billion before the funding round, a notable increase from $157 billion just months ago.
Earlier on Thursday, the Wall Street Journal also reported that OpenAI could be valued at around $340 billion with this funding round.
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Why It Matters: Previously, it was reported that SoftBank might invest $15 billion to $25 billion directly into OpenAI. This investment would represent a significant commitment for SoftBank and its CEO, Masayoshi Son, who has approximately $30 billion in cash reserves.
It could make it the largest stakeholder in OpenAI, surpassing Microsoft Corporation MSFT, which has invested nearly $14 billion.
The move comes as DeepSeek, a Chinese startup, has said it developed its cost-effective R1 model in just two months, investing $5.6 million and using lower-end Nvidia Corporation NVDA chips.
OpenAI has accused DeepSeek of using its proprietary models without authorization.
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