OpenAI, the company behind the popular AI tool ChatGPT, has successfully raised $6.6 billion in its latest funding round, boosting its valuation to $157 billion.
This valuation places OpenAI alongside established financial institutions like Goldman Sachs and exceeds that of many prominent American corporations, making it one of the most valuable startups globally.
The funding is aimed at further advancing OpenAI’s research and development in artificial intelligence (AI). With this influx of capital, OpenAI plans to strengthen its position in frontier AI research, increase its computing capacity, and continue creating tools designed to tackle complex challenges.
Investors in this round include Microsoft, which has been an early supporter of OpenAI, as well as other notable firms like Thrive Capital, SoftBank, and Nvidia. The deal also includes provisions that allow investors to renegotiate terms or recoup their investments if the company does not transition to a for-profit structure within two years.
OpenAI has been in the public eye recently, grappling with internal leadership issues and restructuring efforts to shift from a non-profit model to a for-profit entity. CEO Sam Altman is at the forefront of these changes, which, while attracting new investors, have drawn criticism from some employees and co-founders, including Elon Musk. Musk has voiced concerns that the company has strayed from its original mission to develop AI for the greater good.
Despite the promising valuation, OpenAI faces significant challenges, including projected losses exceeding $5 billion this year, even as it anticipates generating around $3.6 billion in revenue. Additionally, the company has experienced notable executive departures, including its Chief Technology Officer Mira Murati, which has raised concerns about internal stability.
OpenAI boasts a substantial user base, claiming approximately 250 million weekly active users and one million paying business customers. The company is also on track for significant revenue growth, projecting earnings of $11.6 billion for the following year.
