OpenAI plans to use the funds to advance AI research and expand its infrastructure|Ishmael Daro|CC BY 2.0

OpenAI has closed a massive $40 billion funding round, making it the largest private tech investment ever, per CNBC. It raises the ChatGPT maker’s valuation to $300 billion, just behind SpaceX at $350 billion.

SoftBank led the round with $30 billion, joined by Microsoft, Coatue, Altimeter and Thrive.

OpenAI plans to use the funds to advance AI research and expand its infrastructure.

However, SoftBank may reduce its investments to $20 billion if OpenAI doesn’t transition to a for-profit model by the year-end.

ChatGPT boasts ~500 million weekly users, and OpenAI expects revenue to hit $12.7 billion by the end of 2025.

As AI competition intensifies, OpenAI is restructuring leadership to focus on research and product development.