ChatGPT parent OpenAI inched closer to finalizing a $40 billion funding round as of Thursday, led by SoftBank Group Corp (OTC:SFTBF) (OTC:SFTBY) and investors Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management.

Magnetar Capital could contribute up to $1 billion, Bloomberg reported, citing unnamed sources familiar with the matter.

The deal could value the company at $300 billion compared to its previous valuation of $157 billion in the October funding round.

Also Read: ChatGPT Parent OpenAI’s Specialized AI Agents Could Cost Up To $20 Thousand Per Month: report

SoftBank will commit an initial $7.5 billion to the company and $2.5 billion from an investor syndicate. According to the report, the second tranche of $30 billion will include $22.5 billion from SoftBank and $7.5 billion from a syndicate.

Reportedly, OpenAI and Microsoft negotiated to convert Microsoft’s $14 billion investment in OpenAI into equity in the AI company.

Separately, SoftBank has committed billions to the Stargate Project, a Texas-based joint venture with partners including OpenAI, Oracle Corp, and MGX.

OpenAI expects to more than triple its revenue this year to $12.7 billion. In 2024, it generated $3.7 billion in revenue. OpenAI expects sales to proliferate to $29.4 billion in 2026.

Still, OpenAI doesn’t expect to be cash-flow positive until 2029, when it projects revenue to top $125 billion as it grapples with AI development costs.

As of February, SoftBank committed $40 billion in OpenAI at a $260 billion valuation, CNBC reports. It expects to earmark part of the funding to OpenAI’s commitment to Stargate.

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