SOFTBANK is in talks to lead a funding round of up to US$40 billion in OpenAI at a post-money valuation of US$300 billion, sources told Reuters, in what could be the largest ever single funding round for a private company.
SoftBank has offered a term sheet that would value OpenAI at a pre-money valuation, meaning the valuation without the funding of the current round, at US$260 billion.
This marks a jump for the ChatGPT maker from a few months ago, when it was last valued at US$150 billion, added the sources, who requested anonymity to discuss private matters.
OpenAI and SoftBank declined to comment. The Wall Street Journal reported on Thursday (Jan 30) that OpenAI was in talks with SoftBank for an investment round to raise nearly US$40 billion that would value the AI startup at up to US$340 billion.
SoftBank could invest US$15 billion to US$25 billion directly into Microsoft-backed OpenAI, some of which may be used to pay for OpenAI’s commitment to Stargate, one of the sources added.
Stargate, a joint venture by Oracle, OpenAI and SoftBank, plans to invest up to US$500 billion to help the US stay ahead of China and other rivals in the global AI race.
SoftBank’s investment would be on top of the US$15 billion it has already committed to Stargate, the person said, adding the talks are at an early stage. REUTERS
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