OpenAI in Talks for Huge Investment Round Valuing It Up to $300 Billion

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.

Superannuation is the first thought when it comes to self-funding retirement. Yet it is hardly the only option for doing so.

Just as we have a choice in how and where we work to earn a living, many people also have a choice in how to fund their retirement.

It is possible and sometimes preferable to leave your superannuation untouched, allowing it to continue growing. Some or all of your income can come from alternative sources instead.

Here are some alternatives you can consider.

1. Downsize your home

For many who own their own homes, the equity accrued over decades can eclipse the funds in superannuation. However, it’s theoretical money only until it is unlocked.

Selling up the family home and downsizing – or rightsizing – for retirement allows you to pocket those gains tax-free and simultaneously relocate to a more suitable home with lower upkeep costs.

Up to $300,000 from the proceeds can be contributed by a downsizer to boost your super, and the remainder can be used to fund living expenses or actively invested.

Remember that while the sale proceeds of your home are tax-free, any future profits or interest earned from that money will be taxable.

2. Part-time work

Semi-retirement allows you to gradually step into retirement. You continue earning income and super while working part-time, keeping a foot in the workforce while testing the waters of your new found free time.

Doing so also offers scope to move into different roles, such as passing on your skills to future generations by teaching/training others in your field of expertise, or taking employment in a new area that interests you and is closer to home.

3. Self-employment

Retirement from a full-time position presents a good opportunity to pursue self-employment. With more time and fewer commitments on your hands, you have greater scope to turn your hobby into a business or leverage your professional skills and reputation as an external consultant.

Also, for the self-employed and those with a family business, director’s loan repayments from the company are typically tax-free, offering a potentially lucrative source of

income and a means of extracting previous investments into the business without selling your ownership stake.

4. Investments

Rental property income (from residential or commercial properties) can supplement or even provide a generous source of income. The same applies to dividends from shares.

These are likely to be more profitable if you own them well before retirement.

Income that is surplus to your everyday needs can be reinvested using tax-effective strategies to grow your future returns.

5. Family trust

A family trust could be used to house investments for yourself and other relatives, building intergenerational wealth.

Trusts allow funds to be allocated to beneficiaries to manage marginal tax rates and stretch the money further, you have control over how income is split between different family members and have flexibility for changing circumstances.

6. Selling collectables

You may not realise the value of items you have collected over the years, such as wine, artwork, jewellery, vintage cars, and antiques.

Rather than have them collect dust or pay to store them, they could be sold to fund your living costs or new investments.

Where possible, avoid selling growth assets in a depressed market – wait until you can extract maximum value.

7. Obtaining a part-pension

Part-pensions are not only possible but valuable in making your superannuation stretch further. They still entitle you to a concession card with benefits in healthcare, transport, and more.

Take these savings even further by requesting pensioner discounts with other companies, on everything from utilities to travel and insurance to eating out.

Also, don’t overestimate the value of your assets as part of the means test. It’s a common mistake that can wrongly deny you a full or part-pension.

Plan ahead

However, you ultimately fund your retirement, planning is crucial. Advice would hopefully pay for itself.

Understand your spending and how those habits will change before and during retirement, then look to investments that offer the best fit.

Consider a mixture of strategies to diversify your risk, manage your tax liabilities and ensure ongoing income.

Above all, timing is key. The further ahead you plan, the more time you have to embrace additional opportunities and do things at the right time to maximise their value. You’ve worked hard and now is your chance to enjoy the fruits of your labour!

Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Find out more at www.onyourowntwofeet.com.au