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# OpenAI raises $40 billion in a round led by SoftBank
- URL: https://www.techloy.com/openai-raises-40-billion-in-a-round-led-by-softbank/
- Published: 2025-04-08T10:41:33.000Z
- Updated: 2025-04-08T12:25:56.000Z
- Description: This brings the company's valuation to a whopping $300 billion
- Author: Louis Eriakha
- Tags: / News, / Insights, OpenAI

Just five years ago, [artificial intelligence](https://www.techloy.com/tag/artificial-intelligence/) was a niche topic for tech insiders. Today, AI powers everything from phones to workplaces. At the center of this shift is [OpenAI](https://www.techloy.com/tag/openai/), which rose to prominence with [ChatGPT](https://www.techloy.com/tag/chatgpt/), now one of the world’s most widely used and talked-about AI tools.

Since its inception, OpenAI has made headlines not just for the capabilities of its chatbot but also for the staggering amount of money backing it. In 2023, [Microsoft invested $10 billion](https://www.techloy.com/microsoft-to-get-75-percent-of-openais-profit-after-investing-10billion/) in the company’s vision, not long after a previous $1 billion investment. That funding round pushed OpenAI’s valuation to $30 billion.

Now, just two years later, OpenAI is making headlines again. This time, for raising $40 billion, the largest funding round ever for a private tech company. Led by SoftBank, this deal pushes OpenAI’s valuation to $300 billion.

[Microsoft to get 75% of OpenAI’s profit after investing $10 billionMicrosoft Corporation is in negotiations to invest $10 billion into OpenAI, the San Francisco-based company that developed ChatGPT, according to a report from Semafor. This investment will value OpenAI at $29 billion. The funding round will also include participation from other venture firms, and deal documents have been sent to![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/icon/techloy-avatar-1-1332.png)TechloyAcquah Nana Yeboah![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/thumbnail/photo-1649433391420-542fcd3835ea)](https://www.techloy.com/microsoft-to-get-75-percent-of-openais-profit-after-investing-10billion/)

The funding is split into two phases: $10 billion upfront, with $7.5 billion from SoftBank and $2.5 billion from a group of investors, while the remaining $30 billion is expected later this year. But there’s a catch: OpenAI must complete its shift to a fully for-profit company to secure the full amount.

Originally a non-profit, the company began this transition to meet soaring computing costs. CEO Sam Altman believes a for-profit model is needed to attract the necessary capital.

This new round follows a previous $6.6 billion raise, which nearly doubled OpenAI’s valuation from $86 billion to $157 billion. In just months, the company’s valuation nearly doubled again, reflecting investors’ optimism about AI’s future.

Despite this momentum, OpenAI isn’t profitable yet. It earned $3.7 billion in revenue last year but spent $5 billion. Its revenue is expected to hit $12.7 billion this year and $29.4 billion by 2026\. But with spending at this scale, Sam Altman says OpenAI won’t be cash-flow positive until 2029, when it hopes to reach $125 billion in revenue.

If you zoom out and take a look at the industry, OpenAI’s story isn’t unique, as rival AI companies are also running at a loss. Anthropic, for instance, burned through $5.6 billion last year while generating only $1 billion in revenue and doesn't expect to be profitable until 2027.

So, while all the money pouring into AI might be jaw-dropping, investors aren’t expecting quick returns. For now, OpenAI’s ChatGPT still leads the pack, with over 500 million weekly users. The real challenge isn't just staying ahead; it is to make bank after these investments.

[Anthropic reportedly closing in on $2 billion in funding, valuation to hit $60 billionGoogle previously committed a $2 billion investment in Anthropic in 2023.![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/icon/techloy-avatar-1-1333.png)TechloyEmmanuel Oyedeji![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/thumbnail/photo-1695326464742-e2b49e68a8c3-1)](https://www.techloy.com/anthropic-reportedly-closing-in-on-2-billion-in-funding-valuation-to-hit-60-billion/)