OpenAI is on the verge of closing a $40 billion funding round led by SoftBank Group Corp., which could become one of the largest private investments in the artificial intelligence (AI) industry. According to sources cited by Bloomberg on Wednesday, Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management are in talks to participate.
Softbank will reportedly structure the investment in two phases. It will contribute an initial $7.5 billion, and other investors could add another $2.5 billion.
A second tranche of $30 billion is planned later in the year, with the Japanese conglomerate increasing its stake by another $22.5 billion and an additional $7.5 billion coming from other investors. Multiple sources indicated that Illinois-based hedge fund Magnetar Capital may invest up to $1 billion.
OpenAI valuation could double up if funding round materializes
If finalized, the funding round will push OpenAI’s valuation to an estimated $300 billion, nearly double the $157 billion valuation it received in October 2024.
According to one source familiar with the matter, the San Francisco-based company generated $3.7 billion in revenue in 2023 and surpassed the $2 billion revenue mark by December 2023.
Revenue forecasts have since been revised upward. OpenAI now expects to more than triple its earnings to $29.4 billion in 2025. Bloomberg first reported the revised figures, citing the strength of OpenAI’s paid AI software products, which have driven a significant portion of the company’s income.
Still, despite bright revenue predictions, OpenAI incurs substantial operational costs pinned to the development and day-to-day activities of its chatbot, ChatGPT. The company does not anticipate reaching cash-flow positivity until 2029, a year in which it projects revenue to top $125 billion.
The financial burden stems from the costs of chips, building and maintaining data centers, and hiring top-tier AI talent.
SoftBank and OpenAI data center plans in Japan
On March 14, SoftBank and OpenAI announced a collaboration that would expand the latter’s AI infrastructure in Japan. In partnership with OpenAI, the company intends to convert a former Sharp LCD panel plant in Osaka into a large-scale data center for AI operations.
According to Asian news outlet Nikkei Asia, SoftBank will purchase the facility and surrounding land for approximately 100 billion yen ($677 million). Investment in the initiative is expected to reach 1 trillion yen ($6.77 billion).
The facility, set to begin operations in 2026, will be one of Japan’s largest, with a power capacity of 150 megawatts. SoftBank representatives told reporters that the startup aims to commercialize OpenAI’s AI agent technology in Japan, train the model on enterprise data, and provide customizable AI products.
Separately, the Japanese conglomerate has also committed billions to the Stargate Project, a Texas-based joint venture with OpenAI, Oracle, and MGX, which US President Donald Trump announced in January.
Ampere Computing acquisition
Last week, SoftBank Group revealed that it will acquire Ampere Computing, a startup specializing in Arm-based server chips, in a $6.5 billion deal. According to a company statement, the acquisition is expected to be finalized in the second half of 2025.
Carlyle Group and Oracle, both stakeholders in Ampere, have agreed to sell their shares as part of the transaction. SoftBank confirmed that following the acquisition, Ampere will continue to operate as an independent subsidiary and retain its headquarters in Santa Clara, California.
“Ampere’s expertise in semiconductors and high-performance computing will help accelerate this vision and deepen our commitment to AI innovation in the United States,” said Masayoshi Son, chairman and CEO of SoftBank Group, in a press statement.
Ampere, which employs 1,000 semiconductor engineers, has been at the forefront of developing energy-efficient, high-performance chips for cloud and AI workloads.
Meanwhile, SoftBank’s shares fell by as much as 3.92% in the early Thursday Japan trading session, and are down 13% from their year-to-date highs, per Yahoo Finance data.
Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
