OpenAI has closed its long-anticipated $40 billion primary funding round at a $340 billion post-money valuation, the company confirmed Friday, vaulting past SpaceX to become the most valuable private company in history. SoftBank Group anchored the round with a $22 billion commitment, surpassing Microsoft as OpenAI's largest equity holder for the first time.
Microsoft contributed an additional $7 billion to maintain a roughly 25% economic interest, while Coatue Management, Altimeter Capital, Thrive Capital, and Abu Dhabi sovereign fund MGX rounded out the syndicate. The capital injection lifts OpenAI's total funding to over $63 billion across all rounds since 2019.
Capital Funds Stargate Buildout
Approximately $24 billion of the new capital is earmarked for the Stargate data-center initiative, the joint venture announced in January among OpenAI, SoftBank, and Oracle. Stargate aims to deploy roughly $500 billion in AI compute infrastructure across U.S. sites by 2030, with the first 1.2-gigawatt facility under construction in Abilene, Texas, scheduled to come online in Q3 2026.
The remaining proceeds will fund OpenAI's research roadmap, including the rumored GPT-6 training run expected to begin in late 2026 on roughly 850,000 Blackwell Ultra GPUs. The company disclosed annualized revenue has reached $11.6 billion as of March, up from $3.7 billion a year earlier and on pace to exceed $14 billion by year-end.
Profitability Path Still Distant
Despite explosive revenue growth, OpenAI continues to operate at a substantial loss. Bloomberg has reported the company will burn through approximately $11.5 billion in 2026 against the $14 billion of expected revenue, with profitability not anticipated until 2029 according to internal projections shared with investors. The company's operating losses are driven primarily by inference compute costs and free-tier ChatGPT usage.
The funding round lands as OpenAI prepares to convert its capped-profit structure into a conventional for-profit corporation, a transition expected to be completed in Q3. The conversion has drawn legal challenges from co-founder Elon Musk, whose competing xAI venture closed its own $11 billion round at a $115 billion valuation last month. The full structure of post-conversion governance, including the role of the OpenAI nonprofit, has yet to be disclosed.