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Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
On Monday, OpenAI made headlines after it announced it had successfully completed a new funding round. This is the largest ever for any private company and reflects the extraordinary expectations surrounding AI. OpenAI is capitalizing on this momentum.
Historic funding round. It’s the first time in history that a private company raises $40 billion. In October 2024, the company had already secured $6.6 billion. It added to the “multibillion dollar investment” Microsoft made in January 2023, estimated at $10 billion. The tech giant had previously invested $1 billion in 2019 and another $2 billion in 2021.
Transitioning to a for-profit model. OpenAI will receive $10 billion immediately, with $7.5 billion coming from SoftBank and the remaining $2.5 billion from a group of investors. According to the CNBC, the additional $30 billion is contingent on the company successfully making the transition to for-profit status. If the company fails, it risks losing a quarter of the overall investment. Around $18 billion from this round will be allocated to the Stargate Project.
A Coca-Cola-like valuation. OpenAI’s valuation has soared to $300 billion after the recent funding round, placing it on par with companies such as Coca-Cola, Novo Nordisk, Chevron, and LVMH. OpenAI has even surpassed the valuations of companies like ASML, Samsung, and Nestlé. SpaceX is currently worth $350 billion, making it the only private company with a higher valuation. With this funding, OpenAI is also catching up to TikTok, according to business analytics platform CB Insights.
500 million fans. In its Monday release, OpenAI also announced that ChatGPT has 500 million weekly users. It’s a remarkable increase from 400 million just a month ago, which shows that user growth is continuing at a fast pace.
The Studio Ghibli effect. The success of ChatGPT allowed OpenAI to reach 100 million users in only two months. Instagram took 26 months to achieve that figure. ChatGPT’s user base recently grew by one million in just five days. Additionally, following the recent Studio Ghibli trend, the AI chatbot gained one million users in just one hour.
AI isn’t profitable yet. OpenAI’s recent funding round reflects a considerable investment in the potential of AI. However, the current reality is clear: AI isn’t generating profits. Companies are spending money at an alarming rate to develop it, but the costs of training and operations are immense.
OpenAI itself predicts that it won’t be profitable until 2029, meaning it’ll continue to incur losses in the meantime. While the AI startup expects revenues to triple by 2025 to $12.7 billion, it’ll still be operating at a loss.
Is AGI the ultimate goal? OpenAI wants to successfully develop artificial general intelligence that surpasses human intelligence in all areas. However, it remains uncertain whether OpenAI or any other company will achieve this milestone. The investment hinges on the belief that OpenAI will be the one to accomplish it. If successful, the social and economic implications could be unprecedented. Yet, the timeline for achieving AGI is uncertain. It could take years or even decades, if it ever arrives at all.
SoftBank: OpenAI’s primary investor. Notably, OpenAI’s recent funding round is a significant shift in OpenAI’s partnerships. Since 2019, Microsoft has been its major ally, but that relationship has been strained for some time. Microsoft’s involvement in the latest funding round is minor, and both companies seem ready to part ways. In contrast, SoftBank has stepped in as OpenAI’s primary investor and has faith in the success of the company.
Images | Mariia Shalabaieva
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