COMPETITIVE · JAPAN
OpenAI closes mega private funding round at $840B valuation with Amazon, Nvidia, SoftBank commitments
Change
On Feb. 27, OpenAI said its latest funding round valued the company at $840 billion and includes $50 billion from Amazon, $30 billion from Nvidia, and $30 billion from SoftBank, with SoftBank’s investment scheduled to be funded in three phases and the first $10 billion tranche expected to close by April 1.
Why Now
OpenAI disclosed a new private funding round valuing the company at $840 billion. The round includes commitments of $30 billion from SoftBank, $30 billion from Nvidia, and $50 billion from Amazon. OpenAI said the round includes various strings and conditions that come in phases. SoftBank said its total investment in OpenAI is set to be $64.6 billion, representing about a 13% ownership interest. SoftBank said its investment will be made in three phases throughout the year, with the first $10 billion tranche expected to close by April 1.
Impact
- • OpenAI’s capital structure is updated to reflect a funding round at a stated $840 billion va
- • SoftBank’s disclosed position is set at about 13% ownership based on a planned $64.6 billion
- • Funding is staged in phases, with an initial tranche identified as expected to close by Apri
Who Recalculates
- • Private-market investors in OpenAI
- • OpenAI management and employees (equity holders)
- • Strategic technology investors (Amazon, Nvidia, SoftBank
Source
Topics
Business & Markets Startups & VC Technology & Innovation Artificial Intelligence Finance & Banking Capital Markets