OpenAI is preparing for one of the largest fundraising rounds in tech history, aiming to raise up to$40 billion at a staggering$300 billion valuation. The decision, confirmed on Monday, marks a major leap in the company's ambition to lead the global AI race.

Japanese investment giant SoftBank will spearhead the funding effort, pledging an initial$10 billion in April, followed by another$30 billion by year's end-on the condition that OpenAI transitions to a for-profit model.

SoftBank plans to offload a quarter of its contribution to other unnamed co-investors, while other backers in the round are expected to include tech heavyweights like Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital.

If OpenAI does not complete its restructuring as planned, SoftBank's commitment could be halved to$20 billion, according to company statements and sources familiar with the deal.

Capital injection aims to advance AI research, scale OpenAI's infrastructure, and develop more powerful tools for the company's widely used products like ChatGPT, which currently serves over 500 million users weekly.

The momentum reflects the explosive growth and competition within the AI sector, with tech firms and investors chasing transformative breakthroughs and scalable business models.

Since raising$6.6 billion in October at a valuation of$157 billion, OpenAI has nearly doubled its worth in just six months. The new valuation puts the San Francisco-based startup in the same league as global tech titans such as SpaceX, ByteDance, and Stripe.

Analyst Gil Luria from D.A. Davidson and Co. noted that OpenAI's 'ambitious plans on many fronts' require substantial capital and pointed out that the pool of investors with the appetite-and capacity-to back such an undertaking has shrunk significantly.

Part of the raised funds will support the colossal Stargate project, a$500 billion initiative led by OpenAI in partnership with SoftBank and Oracle to build a nationwide network of AI-focused data centres across the United States. These centres are envisioned to support the increasing computational demands of future AI systems.

OpenAI also announced an important structural change. The company will establish a public benefit corporation to attract funding better while ensuring its long-term mission balances profitability with social impact. The US law firm Morrison Foerster provided legal advice for SoftBank in this transaction.

The funding round positions OpenAI as a central player in the AI world and raises critical questions about the balance between innovation, ethics, and the consolidation of AI power among a few dominant entities. The outcome of this transition, especially its success in becoming a for-profit powerhouse, could redefine the landscape of AI for years to come.