OpenAI Refuses To Hold Back on Its Big Demands For Money From Investors Despite Many Shortcomings Plaguing the Company

It looks like OpenAI has its eyes set on the prize and by that, we mean huge sums of money from investors.

The company is not holding back on its demands of $40 billion, despite many shortcomings affecting the company. CEO Sam Altman is currently having discussions with investors about more funding that might raise its approximate valuation to $340B. This might make the company a part of the top 30 biggest firms in the world, according to market capital. That’s a staggering double-fold rise in what it was valued last year in October.

However, the figures might be deceiving in terms of painting the real picture of where it stands today. Despite the high valuation, it’s not said to make any major profits until the year 2029, and that too at the very earliest. Even this is an optimistic stretch as we’ve seen a lot of downfalls and unsuccessful attempts to make it big in the recent past.

The company also hopes to use this extra cash to fund plenty of its operations that might not be doing too great or going as planned. It also hopes to raise money to dually fulfill the promise it made to President Trump about $18B for the AI initiative. That project called Stargate is anticipated to raise more than half a trillion dollars in just four years. As one can expect, the plan didn’t meet a lot of optimism from experts.

Softbank is going to lead the first round of funding for the company and could make a contribution that goes anywhere between $15 to $25B as per a report from the WSJ. Meanwhile, the timing for this new revelation is said to be striking. We just saw China’s startup firm DeepSeek transform the AI world by rolling out an efficient model, better than what the makers of ChatGPT have circling the industry.

The timing is important as it might mean a huge selloff in terms of wiping out the $1 trillion market capitalization. DeepSeek’s R1 model stunned the world as it proved that at a fraction of the cost, it could outperform the best model from OpenAI.

Clearly, all these factors will be in consideration before OpenAI gets its big fat cheque. For now, Altman keeps promising the world that the best is yet to come and more efficient than what DeepSeek just shared. Clearly, the competition in the AI world is heating up. Time will tell who or which model outperforms all others. For now, we’ll be waiting to see which investors bow down to OpenAI’s major demands.

Image: DIW-Aigen

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