OpenAI, the powerhouse behind ChatGPT, has successfully raised $6.6 billion in a recent funding round, propelling its valuation to an impressive $157 billion. This monumental investment solidifies OpenAI's position as one of the world's most valuable private companies.
The funding round saw participation from returning venture capitalists like Thrive Capital and Khosla Ventures, alongside major corporate backers Microsoft and new entrants Nvidia. Additionally, Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi's state-backed investment firm MGX contributed to the substantial influx of capital.
This significant funding comes at a time of ongoing restructuring within OpenAI, marked by executive changes including the recent departure of longtime Chief Technology Officer Mira Murati. Despite these changes, investor enthusiasm remains high, fueled by CEO Sam Altman's optimistic growth projections.
OpenAI is on track to generate $3.6 billion in revenue this year, with losses exceeding $5 billion. The company anticipates a major revenue jump to $11.6 billion next year, signaling robust growth ahead. Thrive Capital has committed approximately $1.2 billion, with an option to invest an additional $1 billion next year if revenue targets are met.
In a move to provide liquidity for employees, OpenAI's Chief Financial Officer Sarah Friar announced a tender offer to buy back shares, although details and timing are yet to be determined. Earlier this year, the company allowed some employees to cash out their shares at a valuation of $86 billion.
The funding was secured through convertible notes, with conversion to equity contingent upon a successful restructuring into a for-profit entity. Investors have also secured protections to claw back their capital or renegotiate the valuation if the necessary changes are not implemented within two years.
Since the launch of ChatGPT, OpenAI has captured the world's attention with 250 million weekly active users. The company's valuation has soared from $14 billion in 2021 to $157 billion, with revenue growing from zero to $3.6 billion, far surpassing initial projections.
OpenAI remains committed to pursuing artificial general intelligence, aiming to develop AI systems that surpass human intelligence while ramping up commercialization efforts to achieve profitability.
Reference(s):
cgtn.com
