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$40B into the furnace: As OpenAI adds a million users an hour, the race for enterprise AI dominance hits a new gear
In a move that surprised the tech industry Monday, OpenAI said it has secured a monumental $40 billion funding round led by SoftBank, catapulting its valuation to an unprecedented $300 billion -- making it the largest private equity investment on record. The landmark investment underscores the escalating significance of AI, and also signals a shift in the enterprise technology landscape.
With such a vast war chest, OpenAI now has much more staying power in its battle to serve companies with sophisticated generative AI solutions — where it is going against giant competitors like Google and AWS, as well navigating a sensitive relationship with its partner Microsoft. Notably, $18 billion of this funding is allocated to the Stargate project—a joint venture between OpenAI, SoftBank, and Oracle –aimed at developing extensive AI infrastructure. Notably, OpenAI announced Monday that it was restoring its offer to allow free users to access the new image generating technology, something it had taken back temporarily last week after usage overwhelmed the company’s servers.
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