OpenAI Secures US$6.6 Billion in Funding
This investment brings OpenAI's valuation to $157 billion, making it one of the most valuable private companies globally.
OpenAI, the company behind ChatGPT, has raised $6.6 billion in its latest funding round, attracting investments from prominent players such as Microsoft, Nvidia, and Abu Dhabi's state-backed firm MGX. This investment brings OpenAI's valuation to $157 billion, making it one of the most valuable private companies globally.[1]
The funding round saw participation from notable venture capital firms like Thrive Capital and Khosla Ventures, along with new investments from Nvidia. Abu Dhabi’s MGX, along with Altimeter Capital, Fidelity, and SoftBank, also contributed. Thrive Capital committed $1.2 billion, with an option to invest an additional $1 billion next year if certain revenue targets are met.
This funding comes amidst significant corporate restructuring at OpenAI, following the recent departure of longtime CTO Mira Murati. OpenAI CEO Sam Altman projects revenues of $3.6 billion this year despite mounting losses of over $5 billion, with expectations to reach $11.6 billion in 2025.
Investors have negotiated protective measures to safeguard their capital during OpenAI's complex restructuring. These changes, which could grant Altman equity, aim to transform OpenAI from a non-profit controlled entity into a for-profit company. If the changes are not implemented within two years, investors will have the option to renegotiate the valuation or recover their capital.
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In September, OpenAI introduced a new advanced voice feature for premium subscribers to its popular chatbot, ChatGPT. The feature allows users to engage in more fluid voice conversations with the chatbot.
The release of the voice feature comes at a time when OpenAI is facing increasing competition in the generative AI space. Google has been rolling out its Gemini Live voice feature for Android users, while Meta is set to release celebrity voices across its platforms, including Facebook, Instagram, and WhatsApp.
OpenAI, which is backed by Microsoft, has been leading the generative AI market since it launched ChatGPT in 2022. As of August, the chatbot boasted over 200 million weekly active users.
