OpenAI Reaches Historic $40 Billion Investment, Making Biggest Private Tech Deal

Ira Singh
Khabar Khabaron Ki,02 April’25

OpenAI has announced on Monday the successful closure of a historic $40 billion funding round, making it the largest private tech investment in history. The round, led by Japan’s SoftBank with $30 billion, brings OpenAI’s valuation to $300 billion, placing it among the most valuable private companies globally.

The funding round, led by Japan’s SoftBank with a $30 billion contribution, also saw participation from a consortium of investors, including Microsoft, Coatue, Altimeter, and Thrive Capital. This latest round surpasses any previous private tech fundraising efforts, nearly tripling the previous record, as per data from PitchBook. With this valuation, OpenAI now stands alongside ByteDance, the parent company of TikTok, and just behind SpaceX, which is valued at approximately $350 billion,according to information.

The record-breaking valuation propels OpenAI into the upper echelon of private enterprises, trailing only SpaceX ($350 billion) and matching TikTok parent company ByteDance, according to offical updates. The $40 billion raise is nearly triple the previous record held by Ant Group’s $14 billion capital infusion in 2018.

SoftBank’s leadership in the funding effort is complemented by a syndicate of investors, including Microsoft, Coatue, Altimeter, and Thrive Capital. OpenAI intends to deploy the fresh capital to advance AI research and scale its computing infrastructure. Approximately $18 billion of the funds are earmarked for OpenAI’s commitment to Stargate, a joint venture with SoftBank and Oracle.

According to information, the funding comes with a significant condition—SoftBank’s total investment may be reduced to $20 billion if OpenAI does not transition into a for-profit entity by December 31. This stipulation adds pressure on OpenAI to secure approvals from Microsoft and the California attorney general while also navigating legal challenges from Elon Musk, one of its original co-founders. Currently, OpenAI operates under a hybrid structure, with a capped-profit limited partnership controlled by its original nonprofit entity. The company’s venture backers have received convertible notes, which will convert into equity upon successful restructuring.

Investor confidence in OpenAI is fueled by the rapid adoption of its AI-driven products. The company ,according to official data,reported that ChatGPT now boasts 500 million weekly users, a significant jump from 400 million last month. Additionally, OpenAI projects its revenue to triple, reaching $12.7 billion by the end of the year. CEO Sam Altman, in a post on X, reportedly highlighted ChatGPT’s staggering growth, recalling that while it took five days to reach its first million users, the platform added another million within just an hour on Monday.

The broader generative AI market is expected to surpass $1 trillion in revenue within the next decade. Tech giants including Google, Amazon, Anthropic, and Perplexity are aggressively developing AI solutions, particularly in the race to create autonomous AI agents. In response to its scaling operations, OpenAI recently reshuffled its executive team. Sam Altman is shifting focus towards research and product development, while Chief Operating Officer Brad Lightcap will oversee business and day-to-day functions,according to information.

OpenAI’s substantial fundraising comes amid a changing landscape in AI investments. CoreWeave recently became the first pure-play AI company to go public, though it faced a challenging market debut. Industry experts speculate that OpenAI could eventually launch an IPO, though no official plans have been disclosed. Mark Klein, CEO of SuRo Capital and an OpenAI investor, recently suggested that an IPO for OpenAI is a strong possibility in the future.