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SoftBank May Lead OpenAI's $40 Billion Funding Round At A $300 Billion Valuation Despite DeepSeek Disruption: Report

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SoftBank May Lead OpenAI's $40 Billion Funding Round At A $300 Billion Valuation Despite DeepSeek Disruption: Report

SoftBank Group (OTC:SFTBF) (OTC:SFTBY) is reportedly in discussions to spearhead a new funding round for OpenAI, potentially raising up to $40 billion.

What Happened: This investment would value the ChatGPT-maker at $300 billion, marking a record-setting funding round for a private entity, reported Reuters, citing sources.

As per the report, SoftBank assessed OpenAI’s value at $260 billion before the funding round, a notable increase from $157 billion just months ago.

See Also: Tesla Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Earlier on Thursday, the Wall Street Journal also reported that OpenAI could be valued at around $340 billion with this funding round.

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Why It Matters: Previously, it was reported that SoftBank might invest $15 billion to $25 billion directly into OpenAI. This investment would represent a significant commitment for SoftBank and its CEO, Masayoshi Son, who has approximately $30 billion in cash reserves.

It could make it the largest stakeholder in OpenAI, surpassing Microsoft Corporation (NASDAQ:MSFT), which has invested nearly $14 billion.

The move comes as DeepSeek, a Chinese startup, has said it developed its cost-effective R1 model in just two months, investing $5.6 million and using lower-end Nvidia Corporation (NASDAQ:NVDA) chips.

OpenAI has accused DeepSeek of using its proprietary models without authorization.

Photo by NP27 on Shutterstock.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

 

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