OpenAI is reportedly on the brink of securing a monumental $40 billion (approximately Rs. 3,43,265 crore) funding round led by SoftBank Group, in what could be the largest fundraising event of all time, according to sources familiar with the matter. Investors in talks to participate include Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management, Bloomberg reported.
Magnetar Capital, the Illinois-based hedge fund, could contribute as much as $1 billion (around Rs. 8,581 crore), according to the Bloomberg report.
If completed, this funding round would push OpenAI’s valuation to a staggering $300 billion (approximately Rs. 25,74,492 crore), nearly double its previous valuation of $157 billion (roughly Rs. 13,47,177 crore) achieved during its last fundraising effort in October. Research firm PitchBook identifies this round as the largest ever for a private company.
As part of the deal, SoftBank plans to invest an initial $7.5 billion (roughly Rs. 64,354 crore) with an additional $2.5 billion (approximately Rs. 21,451 crore) coming from a syndicate of investors. A second tranche of $30 billion (roughly Rs. 2,57,430 crore) is expected later this year, of which SoftBank would contribute $22.5 billion (about Rs. 1,93,069 crore), while the remaining $7.5 billion will be provided by the investor group.
Shares of SoftBank fell by as much as 4.7% in Tokyo amid concerns about the financial impact of such a massive investment. The company’s credit default swaps also widened, suggesting investor unease over its financial exposure.
This move comes as OpenAI continues to experience meteoric growth, driven by the widespread adoption of artificial intelligence technologies worldwide. The San Francisco-based company is projected to more than triple its revenue to $12.7 billion (approximately Rs. 1,08,965 crore) this year, bolstered by its paid AI software offerings.
According to insiders, OpenAI generated $3.7 billion (around Rs. 31,745 crore) in revenue last year, and it expects sales to more than double to $29.4 billion (about Rs. 2,52,250 crore) by next year. Despite the impressive revenue forecasts, the company is not expected to be cash-flow positive until 2029, a year when it projects revenue to surpass $125 billion (roughly Rs. 10,72,562 crore).
The deal also highlights SoftBank’s aggressive push into artificial intelligence, having already committed billions to the Stargate Project, a Texas-based AI infrastructure joint venture involving OpenAI, Oracle, and MGX.