OpenAI has recently stirred the financial world with its latest moves. Just after securing $6.6 billion from major players like Microsoft, NVIDIA, and SoftBank, the AI powerhouse is reportedly seeking another massive infusion—$40 billion to be exact. This new round of funding, if successful, will catapult OpenAI’s market valuation to a staggering $340 billion, according to whispers reported by The Wall Street Journal.
There’s a notable shakeup in the investor lineup too. SoftBank, it seems, is gearing up to take the lead in this funding endeavor with a proposed stake ranging between $15 billion and $25 billion, outpacing Microsoft’s current investment and seizing its spot as the largest shareholder in the company behind ChatGPT.
Should the funding talks go as planned, OpenAI’s valuation would skyrocket from its current $157 billion to an eye-popping $340 billion. Part of the funds raised are expected to fuel the ambitious Stargate project, which OpenAI is banking on—around $500 billion worth—to establish data centers all over the U.S. This move comes as OpenAI braces itself against rising competition from China’s DeepSeek.
Adding to its challenges, there’s growing pressure from investors pushing OpenAI towards becoming a for-profit venture. Elon Musk, a former co-founder of OpenAI and at the helm of Tesla, has taken legal action against CEO Sam Altman and the company, accusing them of straying from their original mission and indulging in racketeering.
Looking ahead, industry analysts warn that OpenAI faces vulnerabilities. If it doesn’t hit the for-profit targets soon, it could fall victim to takeover attempts, needing to pay back investors who have supported its journey so far. If investor attraction wanes, particularly within the next three years, Microsoft might swoop in and acquire OpenAI entirely as the AI market evolves and tensions in partnerships grow.
Despite maintaining a solid lead in AI for the past couple of years, OpenAI could endure financial losses totalling $44 billion before seeing profits around 2029. These losses stem from spending on advanced AI model training and operations, workforce expenses, data acquisition costs, and its partnership with Microsoft, which apparently claims a 20% slice of OpenAI’s revenue.
As OpenAI navigates these financial and strategic hurdles, its journey remains a closely watched saga in the evolving narrative of AI’s future.
