OpenAI has raised $40 billion in new funding, with Microsoft leading the round alongside other investors, according to Reuters. The financing pushes the artificial intelligence company’s valuation above $300 billion and marks one of the largest private capital raises in the sector.

The deal underscores continued investor appetite for AI infrastructure and applications, even as competition intensifies across the industry. Microsoft’s role in the round highlights its deepening ties to OpenAI, which has become one of the most closely watched players in the global technology market.

Reuters reported that the fresh capital could help OpenAI expand its products, computing capacity, and research efforts as it prepares for possible public-market scrutiny in the future. The size of the round also reflects how central AI development has become to corporate investment strategies.

While the long-term path to an initial public offering remains uncertain, the new valuation places OpenAI among the most valuable private technology firms in the world. The funding is likely to draw further attention from regulators, competitors, and investors tracking the rapid commercialization of artificial intelligence.