OpenAI Secures $40 Billion Funding from SoftBank, Valuing Company at $300 Billion

Sam Altman, CEO of OpenAI

OpenAI has secured $40 billion in new funding, led primarily by SoftBank, valuing the AI giant at $300 billion and positioning it among the world’s most well-funded private start-ups. SoftBank is responsible for 75% of the funding, with the remainder coming from Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. The investment will be split into two phases: an initial $10 billion, followed by an additional $30 billion by the end of 2025.

This funding marks a significant milestone as OpenAI transitions from a non-profit structure to a traditional for-profit model. If this shift is not completed by year’s end, SoftBank may reduce its total investment to $20 billion. The $300 billion valuation would make OpenAI one of the largest companies in the S&P 500, surpassing major corporations like Chevron and nearing Coca-Cola.

Masayoshi Son, CEO of SoftBank

Sam Altman, OpenAI’s CEO, expressed excitement about leveraging this investment to advance practical AI applications. SoftBank founder Masayoshi Son also emphasized AI’s critical role in shaping humanity's future and reaffirmed SoftBank’s commitment to OpenAI’s vision.

Earlier, OpenAI announced plans to launch an open-weights AI model, making parts of its system publicly available to enhance customizability and affordability. This represents a shift from OpenAI’s usual subscription-based revenue model, inspired in part by competition from Chinese start-up DeepSeek and Meta’s Llama.

The open-weights approach will offer a more transparent view of how the AI functions, while remaining more limited than fully open-source models. As OpenAI navigates this strategic shift, it aims to balance innovation with broader accessibility.