OpenAI closes $40 billion funding round, becoming the most valuable private company in history - Silicon Canals

"OpenAI has officially closed the largest private funding round in history - $40 billion at a $300 billion valuation - cementing its position as the most valuable private company ever. The round was led by SoftBank, with participation from Microsoft, Coatue, Altimeter, and Thrive Capital, among others."

"According to Bloomberg, the $40 billion raise gives OpenAI a post-money valuation of $300 billion - up from the $157 billion valuation it achieved in its October 2024 round. That's nearly a 2x jump in six months. SoftBank reportedly committed the lion's share, somewhere in the range of $30 billion, making it one of the single largest venture checks ever written."

"OpenAI's annualized revenue reportedly hit $12.7 billion, driven primarily by ChatGPT subscriptions and API access. It's growing fast. But even at that pace, a $300 billion valuation implies a revenue multiple north of 23x - a number that only makes sense if you believe the company will dominate a market that doesn't fully exist yet."

OpenAI secured $40 billion in funding led by SoftBank, achieving a $300 billion valuation—nearly doubling its October 2024 valuation of $157 billion. This represents the largest private funding round ever, with SoftBank committing approximately $30 billion. OpenAI's annualized revenue reached $12.7 billion from ChatGPT subscriptions and API access. The 23x revenue multiple valuation reflects investor confidence in AI's future dominance rather than current financial metrics. SoftBank founder Masayoshi Son's conviction about imminent artificial general intelligence drives the investment thesis. This funding round exemplifies how powerful actors' collective belief in a particular future creates self-fulfilling market dynamics.

Read at Silicon Canals