San Francisco-based artificial intelligence leader OpenAI has secured a staggering $300 billion valuation following a $40 billion investment round led by SoftBank, making it one of the world’s best-funded private start-ups. The funding signals a transformative shift for OpenAI as it moves from a non-profit model to a conventional for-profit company.
According to sources familiar with the deal, SoftBank is contributing 75% of the new funding, while the remaining 25% is sourced from investors including Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital. The Financial Times was the first to report SoftBank’s involvement in the investment round.
The financing will be provided in two phases—an initial $10 billion investment, followed by an additional $30 billion to be injected by the end of 2025. However, if OpenAI does not complete its transition to a for-profit entity by the end of this year, SoftBank retains the right to reduce its total investment to $20 billion, according to sources.
This latest investment positions OpenAI among the top tech giants, as its $300 billion post-money valuation would make it the 27th largest company in the S&P 500 if it were publicly listed today, surpassing Chevron and approaching Coca-Cola in market value. The company had previously raised $6.6 billion in October, at a $157 billion valuation.
“This investment helps us push the frontier and make AI more useful in everyday life,” OpenAI CEO Sam Altman said in a statement.
SoftBank founder Masayoshi Son echoed the significance of artificial intelligence in shaping the future, stating, “AI is a defining force shaping humanity’s future, and our expanded partnership with OpenAI accelerates our shared vision to unlock its full potential.”
Alongside its major funding announcement, OpenAI revealed plans to launch an open-weights AI model in the coming months. The move marks a departure from its traditional subscription-based approach for tools like ChatGPT and enterprise-level API access. Open-weights models offer developers insight into how AI systems function by making essential system weights publicly available, allowing for customization and specific use-case applications.
OpenAI’s shift follows increasing competition from rival open-weight AI models, particularly from Chinese start-up DeepSeek and Meta’s Llama. DeepSeek’s R1 model, released earlier this year, demonstrated advanced reasoning capabilities at a fraction of the cost of comparable Silicon Valley programs, sparking intense debate within the AI community.
Altman acknowledged OpenAI’s need to rethink its open-source strategy in a recent social media post, stating that the company had “been on the wrong side of history” and needed to explore new approaches.
While OpenAI has not yet detailed how it will monetize its open-weight AI model, potential revenue streams could include customization services or commercial licensing agreements.
