Date:
April 01, 2025
SoftBank leads massive $40B investment in OpenAI, marking the largest private tech fundraise and signaling surging confidence in AI.
OpenAI just pulled off the biggest private funding round in tech history—and it’s not even public yet. The company has secured a staggering $40 billion in fresh capital — pushing its post-money valuation to an eye-watering $300 billion.
The funding round, led by SoftBank Group, marks a defining moment not just for OpenAI, but for the entire AI ecosystem. SoftBank alone is said to have poured in $30 billion, accounting for roughly 75% of the round. The rest came from a consortium of high-profile backers, including Microsoft, Thrive Capital, Altimeter Capital, and Coatue Management.
The company said in a blog post:
“We’re excited to be working in partnership with SoftBank Group—few companies understand how to scale transformative technology like they do. Their support will help us continue building AI systems that drive scientific discovery, enable personalized education, enhance human creativity, and pave the way toward AGI that benefits all of humanity.”
Moreover, OpenAI CEO Sam Altman also expressed the need for funding in a statement saying, “This investment helps us push the frontier and make AI more useful in everyday life.”
The scale of the deal is historic. It eclipses any previous private tech funding round — even topping the mammoth raises during the pandemic-era startup boom. It’s also a clear signal that investor confidence in AI, particularly in OpenAI’s trajectory, remains red-hot.
A large portion of the new capital will be directed toward infrastructure. Around $18 billion is earmarked for Stargate — a new initiative involving SoftBank, Oracle, and MGX — to build out a U.S.-based network of AI data centers. These facilities are expected to become the backbone for training next-gen models, including future versions of ChatGPT and enterprise offerings.
Currently, OpenAI’s tools like ChatGPT, DALL·E, and Codex are serving over 500 million users every week. That kind of scale requires immense computing power — and funding like this ensures OpenAI can keep up.
But the Deal Isn’t Without Strings Attached.
According to sources close to the matter, a significant chunk of SoftBank’s investment — nearly half — is conditional on OpenAI fully converting into a for-profit entity by the end of 2025. If the transition stalls, SoftBank could reportedly pull back up to $20 billion from its commitment.
Meanwhile, OpenAI is also preparing to open-source a new large language model with “open weights” in the coming months. While details remain under wraps, insiders suggest it’s a strategic move to counter growing competition from open-source rivals like DeepSeek and Meta’s LLaMA series.
Masayoshi Son, founder and CEO of SoftBank, described the investment as more than financial: “AI is a defining force shaping humanity’s future, and our expanded partnership with OpenAI accelerates our shared vision to unlock its full potential.”
The partnership also deepens Microsoft’s influence, which already has a multibillion-dollar agreement with OpenAI. While Microsoft didn’t lead this round, its presence as a key backer ensures it remains at the center of OpenAI’s ecosystem — particularly on the product side, as tools like Copilot and Azure AI continue to evolve.
With $40 billion in fresh capital and a $300 billion valuation under its belt, OpenAI isn’t just leading the AI race — it’s redefining what’s possible in tech investment.
