(Reuters) -OpenAI said on Monday it would raise $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 AI tools.

Microsoft ( MSFT )-backed 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 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.

The market has particularly accelerated since late 2022 with the launch of AI tools like ChatGPT.

OpenAI had closed a $6.6 billion funding round in October, which valued the company at $157 billion.

With the latest funding, OpenAI will join the ranks of the most valuable private companies such as SpaceX, China's ByteDance and Stripe.