OpenAI may already have substantial financial resources at its disposal. However, it is preparing to acquire additional funds, as reported by The Wall Street Journal.
According to The WSJ, OpenAI is currently negotiating to raise as much as $40 billion in a funding round, which would place the startup’s valuation at an impressive $340 billion. SoftBank is expected to spearhead this round, investing between $15 billion and $25 billion into the developer of ChatGPT, as stated by The WSJ.
If OpenAI successfully concludes this funding round, it would be a significant achievement for the startup, which was valued at $157 billion in October. The WSJ reports that OpenAI plans to utilise the new funds to support its ongoing operational deficits and advance its Stargate initiative, an ambitious project focused on establishing AI data centres across the United States.
In 2024, OpenAI reportedly incurred a loss of approximately $5 billion against revenues amounting to $3.7 billion. These losses could continue to escalate. Together with partners like SoftBank, OpenAI aims to allocate billions of dollars to kickstart the Stargate project.