OpenAI closes $40 billion funding round, largest private tech deal on record

OpenAI on Monday announced it had closed what amounts to the largest private tech funding round on record.

The $40 billion financing values the ChatGPT maker at $300 billion, including the fresh capital. It’s nearly three times the largest amount previously raised by a private tech company, according to PitchBook.

The valuation puts OpenAI behind only SpaceX at $350 billion and even with TikTok parent ByteDance among the world’s most richly valued private companies, according to CB Insights.

Japan’s SoftBank is leading the round with $30 billion, and is joined by a syndicate of other backers, including core investor Microsoft
 as well as Coatue, Altimeter and Thrive.

OpenAI said it plans use the fresh capital to “push the frontiers of AI research even further” and scale its compute infrastructure, according to a blog post. About $18 billion of the funding is expected to be used for OpenAI’s commitment to Stargate, according to a person familiar with the matter who spoke anonymously due to the confidential nature of the terms of the deal.

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