-OpenAI (OPAI.PVT) said on Monday it would raise up to $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation to advance AI research, expand computational infrastructure and enhance its tools.

The Japanese tech investment group said in a statement that it has agreed to fund OpenAI with $10 billion in mid-April and an additional $30 billion in December, contingent on the AI firm transitioning to for-profit by the end of the year.

SoftBank plans to syndicate out $10 billion of its total investment to other co-investors it did not name. A person familiar with the matter told Reuters that the remainder of the funding would come from Microsoft (MSFT), Coatue Management, Altimeter Capital and Thrive Capital.

If OpenAI’s restructuring fails, SoftBank said its total investment amount in the round would drop to $20 billion.

OpenAI said it looks to deliver increasingly powerful tools for the 500 million people who use ChatGPT every week.

Investor enthusiasm for the artificial intelligence sector has surged significantly in recent years, driven by the widespread adoption of chatbots and the emergence of sophisticated AI agents.

Enterprises have integrated AI solutions to streamline their operations and enhance customer experiences, while venture capital firms compete to back promising AI startups.