OpenAI in Talks for Huge Investment Round Valuing It Up to $300 Billion
SoftBank would lead $40 billion round for ChatGPT maker, some of which would go to Stargate AI infrastructure venture
2 min
OpenAI is in early talks to raise up to $40 billion in a funding round that would value the ChatGPT maker as high as $300 billion, according to people familiar with the matter.
SoftBank would lead the round and is in discussions to invest between $15 billion and $25 billion. The remaining amount would come from other investors.
The two companies were recently in talks to value OpenAI as high as $340 billion, one of the people familiar with the matter said. After The Wall Street Journal published that figure in an earlier version of this story, the person said newer negotiations lowered the proposed valuation to as much as $300 billion.
The Japanese company is helping assemble investors for the rest of the round, one of the people said. The discussions are still in flux and could fall apart, the person said.
The $300 billion valuation would include the cash OpenAI raises in the round.
OpenAI was last valued at $157 billion in October, when it raised $6.6 billion . Roughly doubling its value in just a few months would be extraordinary even by the standards of Silicon Valley’s current AI boom.
The funding will be used in part to help OpenAI fulfill its roughly $18 billion commitment to Stargate , a joint venture with SoftBank and others to finance the construction of new data centers in the U.S. powering OpenAI’s technology. The startup also expects to use the cash to fund its money-losing business operations.
At $300 billion, OpenAI would be the second-most valuable startup in the world, behind only Elon Musk’s SpaceX, according to the data provider CB Insights. A funding round of this size would be the largest in Silicon Valley history, according to PitchBook, and blow past OpenAI’s previous fundraising record achieved in 2023, when it raised $10 billion from Microsoft .
OpenAI is attempting to raise the cash after AI models released by the Chinese firm DeepSeek led to a selloff in big tech stocks , including Nvidia , earlier this week. DeepSeek’s success with cheaply made and free-to-use AI technology has led many investors and executives to question the big-spending strategies of OpenAI and other U.S. developers.
OpenAI expected to lose around $5 billion last year on revenue of $3.7 billion, The Wall Street Journal reported in October . At the time, it projected its revenue would grow to $11.6 billion this year.
The funding talks mark a quickly deepening relationship between OpenAI chief executive Sam Altman and SoftBank CEO Masayoshi Son , who appears to have picked the ChatGPT maker as his vehicle to bet big on the AI industry.
SoftBank has separately committed to contribute some $18 billion to Stargate, which Son announced at the White House earlier this month, alongside Altman and Oracle executive chairman Larry Ellison . The project’s partners have committed to invest $100 billion in U.S. data center projects for OpenAI and plan to invest up to $500 billion over four years.
In October, SoftBank contributed $500 million to a $6.6 billion funding round for OpenAI. The following month, it launched a $1.5 billion tender offer to purchase existing shares from employees.
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Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
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