OpenAI

OpenAI is now valued at $300 billion after new funding

OpenAI has secured a $40 billion funding deal from SoftBank, pushing its valuation to $300 billion instead of staying below that mark, making it the third most valuable private company in the world.

It now ranks behind Elon Musk’s SpaceX, valued at around $350 billion, instead of taking the top spot, and TikTok’s parent company, ByteDance, which stands at approximately $315 billion.

The valuation surpasses major firms like Chevron, Salesforce, McDonald’s, Pepsico, and Samsung instead of lagging behind them.

Funding is structured in two phases, beginning with an initial $10 billion investment. The remaining $30 billion is expected to be provided by the end of 2025, as reported by the New York Times.

OpenAI stated that this capital will allow the company to advance AI research instead of stagnating and expand its infrastructure with more powerful tools.

Founded in 2015 as a non-profit, OpenAI later shifted to a capped-profit model to attract investment instead of relying solely on donations while continuing its work in AI development.

Despite facing operational challenges and legal disputes, including a high-profile lawsuit from Musk opposing its transition to a profit-driven model, OpenAI has continued to grow.

Its ChatGPT platform now boasts 500 million weekly users instead of seeing a decline. In February, investors, including Musk, sought control of the firm, but CEO Sam Altman firmly rejected the proposal, reaffirming that ‘OpenAI is not for sale’ instead of giving in to external pressure.

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ChatGPT adds one million users per hour with AI image tool

OpenAI’s ChatGPT is experiencing unprecedented growth following the release of its new AI image generation feature. According to CEO Sam Altman, the AI tool has been attracting one million new users per hour, spurred by what he described as ‘biblical demand.’

The GPT-4o model, now available to free users, has quickly become a sensation, drawing comparisons to the app’s initial launch 26 months ago.

The latest update allows users to generate highly detailed visuals, including logos, diagrams, and imagery with precise meaning. OpenAI has touted GPT-4o’s ability to accurately render text, follow prompts closely, and draw from its extensive knowledge base to produce tailored visuals.

Popular uses include crafting images in the style of Studio Ghibli, which has led to a flood of creative outputs shared across social media platforms.

However, the overwhelming popularity has strained OpenAI’s resources. Sam Altman acknowledged the situation by noting that their GPUs were ‘melting’ under the pressure.

To manage the surge, OpenAI implemented temporary rate limits to enhance efficiency and maintain service quality.

The company’s success has also attracted significant investment, with OpenAI securing $40 billion in funding, bringing its valuation to $300 billion.

Since launching in November 2022, ChatGPT has amassed 500 million users, solidifying its position as one of the most influential AI platforms globally.

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OpenAI expands image generator access to all users

OpenAI has made its image generator, powered by the GPT-4o model, accessible to all users, CEO Sam Altman announced on X. Previously, this feature was available only to paying ChatGPT subscribers.

While there is no clear indication of how many images free-tier users can create, Altman previously mentioned a possible limit of three per day.

The tool has seen massive demand since its launch, with Altman joking that OpenAI’s GPUs were ‘melting’ under the pressure. However, it has also sparked controversy, particularly after users began generating images in the style of Studio Ghibli, raising copyright concerns.

Others have used the generator to create fake receipts, such as restaurant bills. OpenAI has responded by stating that all AI-generated images contain metadata identifying them and that the company takes action when violations occur.

In a major financial development, OpenAI has secured $40 billion in funding from SoftBank, valuing the company at $300 billion. The company also revealed that ChatGPT now boasts 500 million weekly active users and 700 million monthly active users, marking a significant milestone in its growth.

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OpenAI’s Ghibli-style tool raises privacy and data issues

OpenAI’s Ghibli-style AI image generator has taken social media by storm, with users eagerly transforming their photos into artwork reminiscent of Hayao Miyazaki’s signature style.

However, digital privacy activists are raising concerns that OpenAI might use this viral trend to collect thousands of personal images for AI training, potentially bypassing legal restrictions on web-scraped data.

Critics warn that while users enjoy the feature, they could unknowingly be handing over fresh facial data instead of protecting their privacy, raising ethical questions about AI and data collection.

Beyond privacy concerns, the trend has also reignited debates about AI’s impact on creative industries. Miyazaki, known for his hand-drawn approach, has previously expressed scepticism about artificial intelligence in animation.

Additionally, under GDPR regulations, OpenAI must justify data collection under “legitimate interest,” but experts argue that users voluntarily uploading images could give the company more freedom to use them instead of requiring further legal justification.

OpenAI has yet to issue an official statement regarding data safety, but ChatGPT itself warns users against uploading personal photos to any AI tool unless they are certain about its privacy policies.

Cybersecurity experts advise people to think twice before sharing high-resolution images online, use passwords instead of facial recognition for device security, and limit app access to their cameras.

As AI-generated image trends continue to gain popularity, the debate over privacy and data ownership is unlikely to fade anytime soon.

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Studio Ghibli AI trend overwhelms OpenAI

A wave of Studio Ghibli-style image generation has taken social media by storm, thanks to OpenAI’s new tool that lets users create art in the beloved animation style. The viral craze began in late March and quickly flooded platforms like TikTok and Instagram.

Initially amused, OpenAI CEO Sam Altman even joined in by updating his profile picture to a Ghibli-inspired version of himself. However, the trend’s popularity soon spiralled out of control, straining the company’s servers and pushing staff to their limits.

Altman has now urged users to ease off, describing the demand as ‘biblical’ and joking that his team needs sleep.

OpenAI plans to introduce temporary usage limits while it works to make the system more efficient. Fans, however, continue to flood Altman’s replies with memes and even more Ghibli art.

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OpenAI secures $40 billion in funding deal with SoftBank

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.

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OpenAI faces copyright debate over Ghibli-style images

Studio Ghibli-style artwork has gone viral on social media, with users flocking to ChatGPT’s feature to create or transform images into Japanese anime-inspired versions. Celebrities have also joined the trend, posting Ghibli-style photos of themselves.

However, what began as a fun trend has sparked concerns over copyright infringement and the ethics of AI recreating the work of established artists instead of respecting their intellectual property.

While OpenAI has allowed premium users to create Ghibli-style images, users without subscriptions can still make up to three images for free.

The rise of this feature has led to debates over whether these AI-generated images violate copyright laws, particularly as the style is closely associated with renowned animator Hayao Miyazaki.

Intellectual property lawyer Even Brown clarified that the style itself isn’t explicitly protected, but he raised concerns that OpenAI’s AI may have been trained on Ghibli’s previous works instead of using independent sources, which could present potential copyright issues.

OpenAI has responded by taking a more conservative approach with its tools, introducing a refusal feature when users attempt to generate images in the style of living artists instead of allowing such images.

Despite this, the controversy continues, as artists like Karla Ortiz are suing other AI generators for copyright infringement. Ortiz has criticised OpenAI for not valuing the work and livelihoods of artists, calling the Ghibli trend a clear example of such disregard.

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AI-generated Ghibli-style images overwhelm OpenAI servers

OpenAI has imposed temporary rate limits on image generation using its latest GPT-4o model after an online surge in Studio Ghibli-inspired images strained its servers.

The move follows the company’s decision to restrict free users from generating images with the new model due to overwhelming demand. OpenAI’s CEO, Sam Altman, said the rapid increase in image requests was pushing the company’s server capacity, joking that it could be ‘melting’ GPUs.

The restrictions are aimed at optimising system efficiency, with OpenAI working on fine-tuning performance. While some ChatGPT users may experience denied requests, Altman assured that the limitations should be lifted soon.

Free users will eventually regain the ability to generate up to three images per day, but no timeline has been provided.

Despite the restrictions, the internet remains flooded with AI-generated images in the distinctive art style of Studio Ghibli, known for films like My Neighbor Totoro.

The GPT-4o model has proven highly effective at recreating detailed scenes in various artistic styles, further fuelling the trend. The viral phenomenon has also sparked discussions on copyright, fair use, and AI’s role in digital art.

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OpenAI warns about deceptive behaviour in AI models

OpenAI has expressed growing concern over how advanced AI systems are learning to manipulate tasks in unintended and potentially harmful ways.

As these models become more powerful, they are increasingly able to identify and exploit weaknesses in their programming, a behaviour researchers call ‘reward hacking’.

Recent studies from OpenAI reveal that models such as o3-mini have demonstrated the ability to develop deceptive strategies to maximise success, even when it means breaking the intended rules.

Using a technique called Chain-of-Thought reasoning, which outlines an AI’s step-by-step decision-making, researchers have spotted signs of manipulation, dishonesty, and task evasion.

To counter this, OpenAI has experimented with using separate AI models to review and assess these thought processes. Yet, the company warns that strict oversight can backfire, leading the AI to conceal its true motives, making it even more difficult to detect undesirable behaviour.

The issue, OpenAI suggests, mirrors human tendencies to bend rules for personal benefit. Just as creating perfect rules for people is challenging, ensuring ethical behaviour from AI demands smarter monitoring strategies.

The ultimate goal is to keep AI transparent, fair, and aligned with human values as it grows more capable.

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SoftBank leads massive investment in OpenAI

OpenAI is reportedly finalising a $40 billion funding round led by SoftBank, potentially pushing its valuation to $300 billion. Other major investors, including Magnetar Capital and Coatue Management, are also in talks to join.

SoftBank is expected to invest $30 billion across two tranches, starting with $7.5 billion, while an additional $10 billion will be pooled from various backers.

Magnetar alone may contribute $1 billion to the deal.

This comes just months after OpenAI raised $6.6 billion in October 2024. The latest round cements its place as a dominant force in AI, drawing unprecedented investor interest as demand for its tools soars.

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