OpenAI Nears Finish of $40 Billion SoftBank-Led Funding Round
OpenAI is close to wrapping up a $40 billion funding round co-led by SoftBank Group with involvement from Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management, as per a source familiar with the deal.
Chicago-based magnetar Capital, a hedge fund, may invest as much as $1 billion, said several individuals who were not publicly named due to the sensitive nature of the information.
OpenAI , Magnetar, and Founders Fund representatives declined to comment, while Coatue and Altimeter did not respond to requests.
When completed, this round of funding will be the largest-ever funding round, PitchBook reported. The transaction would put OpenAI at a valuation of $300 billion, almost twice its earlier valuation of $157 billion from last month's funding round.
Under the deal, SoftBank is to invest $7.5 billion in the first tranche, while a syndicate of investors will provide another $2.5 billion. Towards the latter half of this year, a second tranche of $30 billion will be coming, with $22.5 billion coming from SoftBank and $7.5 billion from the syndicate of investors.
Chicago-based magnetar Capital, a hedge fund, may invest as much as $1 billion, said several individuals who were not publicly named due to the sensitive nature of the information.
OpenAI , Magnetar, and Founders Fund representatives declined to comment, while Coatue and Altimeter did not respond to requests.
When completed, this round of funding will be the largest-ever funding round, PitchBook reported. The transaction would put OpenAI at a valuation of $300 billion, almost twice its earlier valuation of $157 billion from last month's funding round.
Under the deal, SoftBank is to invest $7.5 billion in the first tranche, while a syndicate of investors will provide another $2.5 billion. Towards the latter half of this year, a second tranche of $30 billion will be coming, with $22.5 billion coming from SoftBank and $7.5 billion from the syndicate of investors.
