You are currently viewing OpenAI Secures $40 Billion Investment from SoftBank for AGI Development
Citation: Image is used for information purposes only. Picture Credit: https://as1.ftcdn.net/

OpenAI Secures $40 Billion Investment from SoftBank for AGI Development

Prime Highlights

  • OpenAI raises up to $40 billion from SoftBank, the largest ever startup funding.
  • The deal will speed up the development of Artificial General Intelligence (AGI) with a long-term goal of developing Artificial Super Intelligence (ASI).

Key Fact

  • SoftBank is providing $10 billion initially, and a further $30 billion contingent upon certain milestones.
  • OpenAI has set out to develop more open generative AI models, amid threats from Meta and DeepSeek.

Key Background

OpenAI has raised a record $40 billion in SoftBank-led funding that roughly doubled its valuation to $300 billion. The deal is strategic to drive the ramp-up of Artificial General Intelligence (AGI), a stepping stone to Artificial Super Intelligence (ASI), which SoftBank believes can be attained through OpenAI’s pioneering efforts. SoftBank is investing $10 billion upfront, with the potential for another $30 billion subject to certain conditions by 2025 end.

The deal is a big step forward for OpenAI in generative AI, especially since it has in the past been opposed to open-sourcing its models. Whereas earlier it would not agree to allow others to make its technology open for modifications that may lead to misuse and leaks, currently OpenAI is able to envision the need of openness because these days it is also being pressed hard by DeepSeek’s and Meta’s models of openness that need further modifications. These companies have already registered major success in the open AI model business as Meta’s Llama AI exceeded more than 1 billion downloads.

Additionally, the success OpenAI has experienced more recently with its image tools, such as the flood of new ChatGPT users, places it well ahead to lead in AI. CEO Sam Altman makes clear that the investment will bring more progress toward AI advancements sooner, toward a long-term AGI aim. Increased investment in the sector implies large technology companies are sprinting to grab supremacy over potentially the next in human-like intelligent machine power.