OpenAI, the creator of ChatGPT, is in talks to raise $40 billion, valuing the company at $340 billion. SoftBank will lead the investment, while Chinese startup DeepSeek poses a growing threat with its cost-effective AI model.
OpenAI, the leading artificial intelligence company behind the viral ChatGPT chatbot, is in discussions to secure a massive funding round worth up to $40 billion. This investment, if finalized, would propel OpenAI's valuation to a staggering $340 billion. Leading the charge is SoftBank, the Japanese tech conglomerate, with a proposed contribution ranging from $15 billion to $25 billion. This would solidify SoftBank's position as the primary investor in this round.
OpenAI's last valuation, established through private investments, stood at $157 billion. The company's meteoric rise began in late 2022 with the launch of ChatGPT, which ignited a global frenzy surrounding generative AI. The upcoming funding could be instrumental in supporting OpenAI's ambitious Stargate project, a collaborative venture between SoftBank, OpenAI, and another unnamed partner.However, OpenAI's dominance in the generative AI landscape is facing increasing challenges. DeepSeek, a Chinese startup, has emerged as a formidable competitor, generating significant buzz in the United States with its app's impressive performance and remarkably lower training costs compared to its American counterparts. DeepSeek's rapid ascent has sent ripples through the market, prompting concerns about OpenAI's future. At an event hosted by OpenAI in Washington, D.C., CEO Sam Altman acknowledged DeepSeek's capabilities, stating, 'This is a reminder of the level of competition and the need for democratic AI to win.' He also highlighted the growing interest in reasoning and open-source AI, areas where DeepSeek appears to be making strides
OPENAI GENERATIVE AI DEEPSEEK SOFTBANK FUNDING COMPETITION CHATGPT
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