OpenAI, the artificial intelligence company behind ChatGPT, said it has finalized a funding round that will bring in $40 billion from SoftBank Group Corp. and other investors at a $300 billion valuation, including money raised.
The AI developer’s financing round is the largest of all time, according to data compiled by research firm PitchBook. The deal values the ChatGPT maker at almost double its previous valuation of $157 billionwhen it raised money in October. Bloomberg reported on March 26 that OpenAI was close to buttoning up the $40 billion financing deal.
“Hundreds of millions people use ChatGPT each week,” Chief Executive Officer Sam Altman said in a statement Monday. “This investment helps us push the frontier and make AI more useful in everyday life.”
SoftBank, which is leading the deal, will initially invest $7.5 billion in the company along with $2.5 billion from an investor syndicate, according to a person familiar with the agreement. Additional investors in the group include Microsoft Corp., Coatue Management, Altimeter Capital Management, and Thrive Capital, said the person, who asked not to be identified discussing private details. There will be a second tranche of $30 billion invested by the end of 2025, including $22.5 billion from SoftBank and $7.5 billion from a syndicate, this person said.
except that “get em hooked for free” part isnt working, nor is the “then make money” part.
I’m not so certain
Here’s a recent reuters report. https://www.reuters.com/technology/artificial-intelligence/ghibli-effect-chatgpt-usage-hits-record-after-rollout-viral-feature-2025-04-01/
160 million active users is quite literally worse than many mobile games developed for a tens of, maybe hundreds of thousands of, usd. 160 million active users for 40 billion funding (they have needed more than this, but i cant be assed to go tally their funding) means theyve spent $250 per user, and their costs only grow as people use it. That is not including the massive server time subsidies Azure has provided them. This is not a profitable company and never will be.
“Block Blast” on the google play store has 40 million daily active users, 160 million monthly, and the studio has around 30 people. Its revenue from ads alone is in the tens of millions per month if this case study is accurate. Oai claims their monthly revenue in the hundreds of millions… with operating costs at greater hundreds of millions. oai profit is negative, with no signs of improving without entirely changing their business plan.