OpenAI, a high-profile artificial intelligence company, is set to complete a $40 billion fundraising deal with SoftBank, nearly doubling its valuation from just four months ago. The deal will value OpenAI at $300 billion, making it one of the most valuable private companies in the world alongside SpaceX and ByteDance.
SoftBank will invest up to $40 billion in OpenAI, with other investors contributing about a quarter of the total funds. This investment round shows that investors are still bullish on AI market leaders like OpenAI, despite recent market uncertainties. This comes after a Chinese company, DeepSeek, unveiled rival technology late last month, causing a stir in the industry.
DeepSeek claimed to have built one of the world’s most powerful AI systems using significantly fewer computer chips and lower costs compared to companies like OpenAI. However, many experts believe that companies with greater access to computing power will continue to lead the market.
In response to this competition, OpenAI, SoftBank, and Oracle have entered an agreement to invest $100 billion in building new computer data centers in the United States to enhance their AI capabilities. This development highlights the ongoing race for dominance in the AI market.
It is worth noting that The New York Times has sued OpenAI and Microsoft, claiming copyright infringement related to AI systems. However, both companies have denied the allegations.
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