OpenAI, the creator of ChatGPT, has successfully secured $6.6 billion in funding, potentially valuing the company at $157 billion and solidifying its status as one of the world’s most valuable private firms.
This latest funding round attracted returning venture capital investors such as Thrive Capital and Khosla Ventures, along with significant backing from Microsoft and new participation from Nvidia.
The closure of this funding comes amid OpenAI’s ongoing restructuring and leadership changes, including the recent departure of its Chief Technology Officer, Mira Murati. Notable investors in this round also include Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s MGX.
OpenAI Chief Financial Officer Sarah Friar informed employees that the company plans to offer liquidity through a share buyback program, although specific details and timelines have yet to be finalized. Earlier this year, some employees were allowed to cash out shares at a valuation of $86 billion.
Thrive Capital committed approximately $1.2 billion and negotiated an option to invest an additional $1 billion next year, contingent on the company achieving a revenue goal. Notably, Apple was in discussions to invest but ultimately did not participate.
The funding comes as convertible notes, with potential conversion to equity contingent on a corporate restructure that would remove the current nonprofit control. Despite recent personnel changes, investor enthusiasm remains high, with projections indicating OpenAI could generate $3.6 billion in revenue this year, climbing to $11.6 billion next year.
Since the launch of ChatGPT, OpenAI has attracted 250 million weekly active users, and its valuation has skyrocketed from $14 billion in 2021 to $157 billion today. The company continues to pursue the ambitious goal of developing artificial general intelligence (AGI) while ramping up its commercialization efforts.
