OpenAI eyes massive investment round valuing it at $340 billion

Investing.com --OpenAI is in talks for a new funding round to raise nearly $40 billion that could value the AI startup at at $340 billion, the Wall Street Journal reported.

Softbank (OTC: SFTBY) would lead the round and is in discussions to invest between $15 billion and $25 billion, the report said citing person familiar with the matter. The Japanese conglomerate is also working to bring in additional investors to complete the round.

OpenAI did not immediately respond to Investing.com request for comment.

Talks were ongoing and could still fall through, the report added.

A portion of the funding is expected to support OpenAI’s $18 billion commitment to Stargate, a joint venture with SoftBank (TYO:9984) and others to finance the construction of new data centers in the U.S. powering OpenAI’s technology across the country.

The startup also expects to use the investment to fund its cash-burning business operations.

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