News on Medial

OpenAI closes $6.6 billion funding haul with investment from Microsoft, Nvidia

Livemint · 2m

- OpenAI has raised $6.6 billion in funding, with investors valuing the company at $157 billion. - Notable investors include Thrive Capital, Khosla Ventures, Microsoft, Nvidia, Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi's MGX. - OpenAI's Chief Technology Officer, Mira Murati, recently departed from the company. - The company plans to offer a tender offer to buy back shares from employees with the new funding. - Thrive Capital has negotiated an option to invest an additional $1 billion next year if OpenAI meets a revenue goal. - Apple, which was speculated to invest, did not end up joining the funding round. - OpenAI's funding came in the form of convertible notes, and the conversion to equity depends on a successful for-profit structural change. - OpenAI projects $3.6 billion in revenue for this year, with expectations of a major jump to $11.6 billion in revenue next year. - Investors have secured protections and negotiating terms based on OpenAI's ongoing corporate restructuring. - ChatGPT has amassed 250 million weekly active users and contributed to OpenAI's significant valuation growth from $14 billion to $157 billion. - OpenAI remains committed to pursuing artificial general intelligence (AGI) while focusing on commercialization and profitability.