Tech Giants, OpenAI in Talks to Increase Company's Valuation to $340B

OpenAI is one of the thriving AI companies in the world with leading innovations under its name, such as ChatGPT. The company is worth billions of dollars, however, it's trying to raise even more, according to a report from The Wall Street Journal (WSJ).

OpenAI is in talks to secure up to $40 billion in a funding round that would bring the value of the startup to $340 billion. Softbank, one of the names in the hat, would lead the round by investing between $15 billion to $25 billion into the ChatGPT maker. In light of recent innovations in the industry, this is a move in the right direction for OpenAI. 

If the company successfully closes the round, it would be a historic feat, considering OpenAI was valid at $157 billion in October 2024. According to the WSJ, OpenAI has several critical uses for the influx of cash. It would use the capital to fund its money-losing business operations and fulfill its commitment to Stargate, its ambitious project to build AI data centers across the United States.

In 2024, OpenAI reportedly lost around $5 billion, while recording revenues of $3.7 billion, and the losses could increase. Thanks to its partnership with companies like SoftBank, OpenAI aims to contribute billions of dollars to follow through on its Stargate program.