OpenAI is seeking additional capital from investors, with a new round expected to reopen on July 28. The company’s valuation has surged to $300 billion after announcing a $40 billion fundraising effort earlier this year. SoftBank led the initial tranche of $10 billion, but its commitment could be reduced if OpenAI fails to restructure by the end of the year.
The investment round is part of a four-year AI data center project worth up to $500 billion, in which SoftBank is committed to 75% of the funding. However, the relationship between OpenAI and SoftBank has been strained due to disagreements over partnership details.
OpenAI’s CEO Sam Altman has been working to secure deals for Stargate-aligned data centers without SoftBank’s involvement. The company’s structure has also been a point of contention, with Elon Musk previously suing OpenAI for allegedly abandoning its original mission.
In May, OpenAI proposed a new structure that would keep the nonprofit arm in control and turn the for-profit subsidiary into a public benefit corporation. This proposal is contingent on approval by attorneys general in California and Delaware.
OpenAI’s backers include Microsoft, Andreessen Horowitz, Sequoia Capital, and Nvidia, among others. The company has raised over $63 billion since its founding in 2015.
Source: https://www.wired.com/story/openai-fundraising-round-softbank-sam-altman