OpenAI has raised $6.6 billion in a new funding round, bringing its valuation to $157 billion.
“We have raised $6.6 billion in new funding at a $157 billion post-money valuation to accelerate progress on our mission. The new funding will allow us to double down on our leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems,” the firm said.
The funding round was led by Josh Kushner’s Thrive Capital, with $1.3 billion, and Microsoft Corporation, OpenAI’s largest backer, with about $750 million, in addition to the $13 billion it had already invested in the startup. Other investors include Khosla Ventures, Fidelity Management & Research Co., and Nvidia, the AI chipmaker.
According to a Bloomberg report, the raise puts OpenAI as one of the three largest venture-backed startups, alongside Elon Musk’s SpaceX and TikTok owner ByteDance Ltd. It also reveals the tech industry’s belief in the power of AI and its advancements.
“AI is already personalising learning, accelerating healthcare breakthroughs, and driving productivity,” said Sarah Friar OpenAI Chief Financial Officer. “And this is just the start.”
Read also: Understanding Bitcoin ETFs: A Beginner’s Guide (Part 1)
Sam Altman, OpenAI’s chief executive officer, has also sought exclusivity with investors in a bid to restrict rivals’ access to capital and strategic partnerships.
The firm told investors, “We’ll give you allocation, but we want you to be involved in a meaningful way in the business, so you can’t commit to our competitors. ”
Experts note that Altman risks inflaming existing tensions with competitors, especially Elon Musk, who is suing OpenAI. However, OpenAI noted that they are on a mission to make AI a generally accessible resource.
“We aim to make advanced intelligence a widely accessible resource. We’re grateful to our investors for their trust in us, and we look forward to working with our partners, developers, and the broader community to shape an AI-powered ecosystem and future that benefits everyone. By collaborating with key partners, including the U.S. and allied governments, we can unlock this technology’s full potential,” the AI leader added.
The deal follows a turbulent year for OpenAI. Last November, the company’s board fired and quickly rehired CEO Sam Altman. In the following months, the company has remade its board, hired hundreds of new employees, and lost several key leaders, including Ilya Sutskever, co-founder, and Mira Murati, chief technology officer.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
