Microsoft-backed (MSFT) OpenAI is nearing a $40 billion funding round led by Japan's SoftBank Group, Bloomberg News reported Thursday, citing people familiar with the matter.
Magnetar Capital, Coatue Management, Founders Fund and Altimeter Capital are among the investors in discussions to participate in the round, according to the report.
SoftBank will invest an initial $7.5 billion in the parent of artificial intelligence chatbot ChatGPT, along with $2.5 billion from an investor syndicate, one of the sources told the news outlet. A second tranche of investment later this year will include $22.5 billion from SoftBank and $7.5 billion from a syndicate, the source added.
Magnetar may contribute as much as $1 billion, Bloomberg reported, citing multiple people.
OpenAI, SoftBank, and Magnetar did not immediately respond to MT Newswires' requests for comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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