 "ChatGPT-maker OpenAI's valuation hits $157 billion, one of the biggest in the world")
ChatGPT-maker OpenAI has secured a significant $6.6 billion in funding, in what was one of Silicon Valley’s biggest ever fundraising rounds.
Key participants in this round include returning investors such as Thrive Capital and Khosla Ventures, as well as major corporate backer Microsoft. Notably, Nvidia has joined as a new backer.
The capital infusion was raised through convertible notes, based on a shift in OpenAI’s structure to for-profit, with further protections negotiated by investors.
Thrive Capital, for instance, secured an option to invest an additional $1 billion next year, subject to revenue milestones.
Following the liquidity boost, the company’s valuation is now at an astounding $157 billion. With that, the Sam Altman-led firm has sealed its place among the most valuable private firms globally.
The influx of funds comes amid internal restructuring at the company that has already seen some high-profile changes, including the departure of Chief Technology Officer Mira Murati.
Despite the corporate rejigging, investor enthusiasm in the company remains strong, as CEO Sam Altman and CFO Sarah Friar forecast exponential growth in the company’s revenue.
A major factor driving investor excitement is OpenAI’s pursuit of artificial general intelligence (AGI)
OpenAI expects to close this year with $3.6 billion in revenue, despite substantial losses of over $5 billion. Projections for 2025 predict an even steeper revenue rise to $11.6 billion.
Impact Shorts
More Shortscontinues to fuel investor excitement. The company, now serving 250 million weekly users of ChatGPT, has seen its valuation soar from $14 billion in 2021 to the current figures, far outpacing previous projections.
As OpenAI navigates its transformation, investors have ensured mechanisms to protect their capital if planned changes are not realised within the next two years. The future looks both ambitious and turbulent, but investor confidence in the company’s trajectory remains firm.
With inputs from agencies
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