OpenAI announced it has completed a deal to raise $6.6 billion in new funding, valuing the artificial intelligence company at $157 billion and ramping up its efforts to build the world’s leading generative AI technology.
The deal is one of the largest private investments in history and makes OpenAI one of the three largest venture-backed startups, along with Elon Musk’s SpaceX and TikTok owner ByteDance Ltd. This scale of investment confirms the technology industry’s confidence in the power of AI. , and the desire for very expensive research to drive that progress.
The funding round was led by Josh Kushner’s venture capital firm Thrive Capital, with participation from investors including Khosla Ventures, Altimeter Capital, and Fidelity Management & Research Company. Other backers include Microsoft, which has already invested $13 billion in the startup, and Nvidia, the chipmaker whose powerful processors are at the center of the AI ​​boom.
Global investors such as SoftBank Group Corp. and Abu Dhabi-based emerging technology investment firm MGX also participated.
Apple did not participate in the deal, but the company had previously been in talks to invest in this round, Bloomberg reported. The iPhone maker has partnered with OpenAI to integrate ChatGPT on its devices and through the Siri voice assistant. As part of that partnership, Apple was previously in talks to have OpenAI’s board serve as an observer, but those plans were scrapped, people told Bloomberg.
This major funding round comes after a turbulent year for OpenAI. Last November, the company’s board of directors was fired and quickly rehired CEO Sam Altman. In the months that followed, the company reshuffled its board of directors, hired hundreds of new employees, and lost several key leaders, including co-founder Ilya Sutskeva and chief technology officer Mila Murati. .
At the same time, OpenAI is discussing transitioning from its nonprofit, unconventional organization to a for-profit model, which has frustrated investors. The move will placate the company’s supporters, but could create legal hurdles. As part of the transition, OpenAI has discussed granting Mr. Altman stock in the company, which could be worth more than $10 billion, although OpenAI’s board has declined to discuss specific numbers. said it had not been discussed.
OpenAI sparked Silicon Valley’s excitement about the potential of AI in 2022 when it debuted its chatbot, ChatGPT. The tool can generate human-like responses to questions and attracts 250 million weekly active users, according to officials. Those who wish to keep their personal information anonymous. According to the person, the company’s paid service ChatGPT Plus has 11 million subscribers, and its business-focused services have 1 million users.
New companies have sprung up to compete with OpenAI in recent years, including companies founded by former OpenAI employees, such as Anthropic and Safe Superintelligence. OpenAI also faces stiff competition from large technology companies with vast resources, such as Google and Amazon.com Inc., which are developing their own AI models.
