OpenAI is set to secure $40 billion in funding with lead investor SoftBank, pushing its valuation to $300 billion, however, the SoftBank-led funding round could shrink by half if the nonprofit doesn't finalize its conversion to a for-profit firm by year-end.The Wall Street Journal reported on Friday.
The funding package totals $40 billion, divided into two portions: an immediate $10 billion investment, followed by $30 billion contingent on successful restructuring. Should restructuring fail, the latter amount reduces to $10 billion. Microsoft, its largest investor, still hasn't greenlit the change. Meanwhile, OpenAI continues massive spending, including its $18 billion Stargate expansion project.
If the startup secures the funds it would nearly double its previous valuation of $157 billion from its last funding round in October, when it raised $6.6 billion.
