OpenAI raised $6.6 billion, potentially valuing it at $157 billion, with significant contributions from Microsoft and Nvidia.
OpenAI raised $6.6 billion from investors which could value the company at $157 billion. The funding has attracted returning venture capital investors including Thrive Capital and Khosla Ventures, as well as OpenAI’s biggest corporate backer Microsoft. It also saw new participation from Nvidia and comes at a time when the company has been going through restructuring efforts and executive changes, including the abrupt departure of its longtime Chief Technology Officer, Mira Murati.
OpenAI has secured $6.6 billion in funding, valuing the company at $157 billion. Major investors include Microsoft, Nvidia, and Thrive Capital. The funding follows executive changes and aims to provide liquidity for employees through a share buyback.(AFP)
Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s state-backed investment firm MGX also participated in the round and OpenAI Chief Financial Officer Sarah Friar told employees that the company will be able to provide liquidity for them through a tender offer to buy back their shares in the company following the funding.
Thrive Capital, which committed about $1.2 billion from a combination of its own fund and a special purpose vehicle for smaller investors, negotiated the option to invest another $1 billion next year at the same valuation if the AI firm hits a revenue goal, news agency Reuters reported citing people in the know.
Apple, which was in talks to invest in OpenAI, did not end up joining the funding, the report added.
The Sam Altman company is on pace to generate $3.6 billion in revenue this year on mounting losses of over $5 billion and a major revenue jump next year to $11.6 billion. Since the launch of ChatGPT, it has attracted 250 million weekly active users. The company’s valuation has also risen from $14 billion in 2021 to $157 billion as it grew revenue from zero to $3.6 billion.
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News/Business/ Microsoft and Nvidia love Sam Altman. Proof? OpenAI’s $6.6 billion funding haul
