logo
OpenAI Seeks Additional Capital From Investors as Part of Its $40 Billion Round

OpenAI Seeks Additional Capital From Investors as Part of Its $40 Billion Round

WIRED4 days ago
Jul 22, 2025 2:23 PM OpenAI, which recently announced a $40 billion round of financing, is seeking funding from new and existing investors to fulfill the deal. CEO of OpenAI Sam Altman speaks to members of the media as he arrives at the Sun Valley lodge for the Allen & Company Conference on July 8, 2025. Photograph:OpenAI is seeking capital from new and existing investors, two people familiar with the company's plans tell WIRED. The fundraising effort is part of a $40 billion round announced in March. The round will reopen on Monday, July 28, according to one of the sources, who has direct knowledge of the fundraising effort.
The $40 billion round announced earlier this year brought OpenAI's valuation up to $300 billion, making it one of the most highly valued private startups in history. The round was led by Japanese investment conglomerate SoftBank, which committed to contributing 75 percent of the total funding. The initial tranche was $10 billion, with $7.5 billion from SoftBank and another $2.5 billion from a syndicate of other investors. OpenAI is currently raising the final $30 billion, with $22.5 from SoftBank and $7.5 from a syndicate of other investors.
SoftBank's commitment could be slashed to $10 billion if OpenAI does not restructure by the end of the year, WIRED confirmed.
OpenAI declined to comment on the record.
OpenAI has raised a total of $63.92 billion since the company was founded in 2015, according to PitchBook. Its backers include a wide range of institutional and individual investors, including Microsoft, Andreessen Horowitz, Sequoia Capital, Founders Fund, Thrive Capital, Coatue Management, Nvidia, and Reid Hoffman. Microsoft and OpenAI's relationship is closely intertwined, with Microsoft providing OpenAI with massive amounts of cloud computing resources and OpenAI giving Microsoft exclusive access to its best models—though it was recently reported that their relationship has complications.
OpenAI has also partnered with SoftBank, among others, on a four-year AI data center project in which upwards of $500 billion is projected to be invested. The Wall Street Journal reported earlier this week that the two entities have been at odds over certain aspects of the partnership, including where to build the data centers, and that OpenAI CEO Sam Altman has been making moves to sign deals for Stargate-aligned data centers without the Japanese firm.
SoftBank declined to comment on the record.
OpenAI's company structure has also been a point of contention, and has rankled Elon Musk, who helped launch the research lab with a mission to safeguard humanity against artificial general intelligence, or AGI. After Musk left the company's board in early 2018,OpenAI created a for-profit arm, in part to make it easier to fundraise. Last year Musk sued OpenAI for allegedly abandoning its original mission and said the company is 'not just developing but is refining an AGI [Artificial General Intelligence] to maximize profits for Microsoft, rather than for the benefit of humanity.'
In May, OpenAI proposed a new structure that keeps the non-profit in control of the company, and turns its current for-profit subsidiary into a public benefit corporation. This new non-profit would hold shares in the PBC, and the PBC would in theory be designed to prioritize returns for shareholders while also pursuing projects with clear public benefits. SoftBank's investment in OpenAI is contingent on this new structure being approved by attorneys general in California and in Delaware by early next year.
Additional reporting by Kylie Robison and Zoë Schiffer.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Google should 'walk away' from Waymo
Why Google should 'walk away' from Waymo

Yahoo

time9 minutes ago

  • Yahoo

Why Google should 'walk away' from Waymo

Needham & Company senior media and internet analyst Laura Martin joins Market Domination with Josh Lipton to explain why Alphabet (GOOG, GOOGL) should ditch Waymo and focus on generative artificial intelligence (AI) instead. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Related videos The £70bn pension tax raid Reeves may not be able to resist 10 shares I wouldn't want to hold in a stock market crash After falling 16% in a day, this stock's on my list of shares to buy in August This FTSE 250 trust is easily beating the global index in 2025. Time to buy? Sign in to access your portfolio

EMCOR Group (EME) Sees EPS Surge as Net Income Climbs to US$241 Million
EMCOR Group (EME) Sees EPS Surge as Net Income Climbs to US$241 Million

Yahoo

time9 minutes ago

  • Yahoo

EMCOR Group (EME) Sees EPS Surge as Net Income Climbs to US$241 Million

EMCOR Group recently announced a regular quarterly cash dividend of $0.25 per common share, to be paid on July 31, 2025. This steady dividend approach aligns with the company's robust quarterly performance, which saw net income rise to $241 million and EPS increase substantially year-over-year. Additionally, the ongoing share buyback program has strengthened shareholder returns. Despite the broader market's moderate growth of 1.4% over the past week and 17% over the past year, EMCOR's notable share repurchases and solid financial outcomes appear to have amplified investor confidence, contributing to the company's impressive 55% stock price surge last quarter. We've spotted 1 risk for EMCOR Group you should be aware of. Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. EMCOR Group's recent announcement of a quarterly dividend and the implementation of its share buyback program underline its commitment to enhancing shareholder returns. Despite a potential downside to the current share price of US$635.06, which exceeds the consensus analyst price target of US$549.57 by 13.46%, these actions could continue to buoy investor confidence. The company's performance over the past five years, with a total return exceeding 844.60%, showcases its robust long-term trajectory. In the last year, EMCOR's share performance exceeded both the broader market's 17.2% and the US Construction industry's 54.2% return, highlighting its strong standing relative to peers. The successful integration of acquisitions and strategic diversification into sectors like data centers and healthcare is anticipated to impact future revenue positively. This, coupled with operational efficiencies and strong revenue collaboration, may reinforce earnings projections. However, EMCOR's earnings forecasts of a 6.2% annual growth rate lag behind the broader market's 14.9% forecast, which could present challenges in meeting broader industry expectations. The company's impressive share price rise of 55% last quarter signals optimism, though its current value being above the target may indicate overvaluation concerns. Nevertheless, the consistent cash flow and healthy margins underscore its potential resilience against margin pressures, supply chain challenges, and other economic uncertainties. As analysts estimate revenue growth to 7.9% annually over the next three years, any tangible improvement in operational metrics could shift the valuation outlook positively. Unlock comprehensive insights into our analysis of EMCOR Group stock in this financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EME. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Pfizer (PFE) Receives CHMP Recommendation For Adapted COVID-19 Vaccine COMIRNATY
Pfizer (PFE) Receives CHMP Recommendation For Adapted COVID-19 Vaccine COMIRNATY

Yahoo

time9 minutes ago

  • Yahoo

Pfizer (PFE) Receives CHMP Recommendation For Adapted COVID-19 Vaccine COMIRNATY

BioNTech SE and Pfizer recently received a positive recommendation from the European Medicines Agency for marketing authorization of their COVID-19 vaccine, which likely contributed to Pfizer's share price increase of 8% in the last quarter. The company's advancements in COVID-19 vaccine development, alongside other product-related announcements like the XTANDI and BRAFTOVI trial results, added weight to this upward movement. Despite legal challenges and declining earnings, Pfizer's focus on innovation and strategic partnerships like the one with XtalPi possibly countered broader market moves, which saw a smaller 1% increase in the same period. We've identified 3 warning signs for Pfizer that you should be aware of. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The recent positive recommendation from the European Medicines Agency for the COVID-19 vaccine developed by BioNTech SE and Pfizer has contributed to an 8% increase in Pfizer's share price over the last quarter. This news may provide a temporary boost to Pfizer's revenue and earnings forecasts, especially as the company continues to innovate amidst legal challenges and declining earnings. The authorization could enhance immediate market confidence in Pfizer's product pipeline, impacting future revenue projections positively. Over the past year, Pfizer experienced a total return of 13.78% including dividends, reflecting a challenging period for shareholders. When compared to the broader US market's return of 17.2% over the same period, Pfizer has underperformed, highlighting investor concerns over competitive pressures and revenue growth prospects. The current share price movement toward the analyst consensus price target of $29.23 suggests a cautiously optimistic outlook among some market participants. Analysts' revenue forecasts reflect potential declines due to increased competition for existing products, yet others anticipate that strategic shifts in research focus, especially in oncology, might mitigate future earnings risks. With a modest increase of 8% in shares largely tied to vaccine authorization, it underscores the uncertainty surrounding longer-term performance relative to bearish analyst expectations. Understand Pfizer's track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PFE. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store