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OpenAI is projected to secure an initial $10 billion, with SoftBank contributing $7.5 billion and an additional $2.5 billion from a group of investors, as reported by Bloomberg. The balance of $30 billion is expected by the end of the year, according to CNBC — contingent upon OpenAI shifting to a for-profit model by then. Should this transition not occur, the company risks forfeiting 25% of the agreement’s value.
This investment follows closely after OpenAI’s announcement of Stargate, a collaboration valued at $500 billion, supported by SoftBank, Oracle, and the Abu Dhabi fund MGX, aimed at developing substantial AI data centers over the forthcoming four years. OpenAI has been swiftly advancing: CEO Sam Altman revealed on Monday that OpenAI attracted 1 million users in just one hour, spurred significantly by a new ChatGPT feature that went viral for generating AI art reminiscent of Studio Ghibli’s style. Altman further shared on Wednesday that they intend to unveil a formidable new language model with enhanced reasoning capabilities shortly. The funding narrative notes that ChatGPT is now utilized by 500 million users every week.
Despite the rapid surge in growth driven by ChatGPT, the startup continues to incur significant financial expenditures. Bloomberg has mentioned that the startup expects to generate $12.7 billion in revenue this year, a substantial increase from the $3.7 billion in recurring revenue achieved last year. Nonetheless, predictions indicate that OpenAI might not achieve positive cash flow until 2029, with anticipated revenues reaching an impressive $125 billion.
OpenAI’s funding announcement emphasized the startup’s goal of building “AGI that benefits all of humanity.” Altman has been clear that it’ll take a lot to pull this all off—compute, energy, global infrastructure, and yes, a staggering amount of cash. This round, the startup claims, brings it one step closer.
