On Monday, OpenAI announced it had closed on what amounts to be the largest private tech funding round on record.
The $40 billion financing values the ChatGPT maker at $300 billion, including the fresh capital. It’s nearly three times the largest amount previously raised by a private tech company, according to PitchBook. It also puts the AI behemoth behind only SpaceX as the most valuable private company in the world, less than a decade after it was founded.
Japan’s SoftBank Group led the round with a $30 billion investment, followed by a syndicate of other backers, including core investor Microsoft.
OpenAI said it plans to use the fresh capital to advance AI research, expand computational infrastructure, and enhance its tools.
Investor enthusiasm for the artificial intelligence sector has surged significantly in recent years, driven by the widespread adoption of chatbots and the emergence of sophisticated AI agents.
Enterprises have integrated AI solutions to streamline their operations and enhance customer experiences, while venture capital firms compete to back promising AI startups.
San Francisco-based OpenAI had closed a $6.6 billion funding round in October, which valued the company at $157 billion. This new funding round would nearly double the valuation of the AI startup.
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