OpenAI has raised $6.6 billion from investors, potentially valuing the company at $157 billion, solidifying its position as one of the most valuable private firms globally.
The funding round attracted well-known venture capital firms like Thrive Capital, Khosla Ventures, and Microsoft, a returning corporate backer. New investors, such as Nvidia, also participated.
This funding round comes as OpenAI undergoes significant internal restructuring, including the recent resignation of its Chief Technology Officer, Mira Murati. The company's Chief Financial Officer, Sarah Friar, announced plans for a tender offer to allow employees to sell shares, although details are still being finalized.
Did you read this?
Earlier this year, some employees were allowed to cash out their shares, valuing the company at $86 billion. Thrive Capital, which invested $1.2 billion, secured the option to contribute an additional $1 billion next year, contingent on the company meeting specific revenue targets.
Despite talks, Apple ultimately chose not to participate in this round of funding. The raised funds come in the form of convertible notes, with conversion tied to a future corporate restructuring that would allow OpenAI to become a for-profit entity free from nonprofit board control.
Despite ongoing restructuring efforts and rising losses, OpenAI projects a sharp increase in revenue from $3.6 billion this year to $11.6 billion next year.
With 250 million weekly active users of ChatGPT, the company's rapid growth continues to captivate investors, who anticipate significant profitability as it pursues artificial general intelligence (AGI).
Investors also secured protections, including clauses to reclaim their capital if restructuring is not completed within two years.
