SoftBank has announced a historic investment of up to $40 billion in OpenAI, setting a new record for the largest startup financing to date. This deal far exceeds previous landmark rounds, including Microsoft’s $10 billion strategic investment in OpenAI in 2023.

‍

The funding will be structured with SoftBank leading a syndicate expected to contribute $10 billion, while SoftBank itself will provide the remaining $30 billion. OpenAI is projected to receive the full amount by the end of 2025. Upon restructuring its for-profit subsidiary, OpenAI’s post-money valuation will reach $300 billion, making it the most valuable private venture-backed company founded in the last decade.

‍

This massive round is part of a broader trend of soaring valuations for private tech companies. Other notable firms include SpaceX, valued at $350 billion; Stripe, at $91.5 billion; and xAI, which recently announced an $80 billion valuation following a plan to acquire the social media platform X.

‍

Additional high-profile private companies with valuations over $45 billion include Databricks, Anthropic, and Waymo, reflecting a growing willingness among investors to hold onto shares in private firms longer before an exit.

‍

While the scale of these financings is unprecedented, the sustained growth in private company valuations signals a new era in venture funding, where companies can remain private longer and continue raising capital at record levels.

‍