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Unveiling the Largest Startup Financing in History How Did SoftBank and OpenAI Do It


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SoftBank plans to invest up to $40 billion in OpenAI, creating the largest startup funding deal in history. This investment surpasses Microsoft’s $10 billion partnership with OpenAI in 2023 and SoftBank's $9.5 billion deal with WeWork in 2019. The financing structure involves a syndicate of co-investors contributing $10 billion, while SoftBank will provide $30 billion. OpenAI expects to receive the full investment by year-end, aiming for a post-money valuation of $300 billion following certain restructuring conditions. Currently, seven U.S. venture-backed private firms have valuations above $45 billion, with rising trends indicating increased confidence in retaining private shares for longer periods.

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Web3 Wavefronts - Digestible News on Crypto, DeFi and AIBy theWeb3.news