OpenAI has just concluded a historic funding round, raising $6.6 billion at a valuation of $157 billion.
The funding was led by Thrive Capital, which contributed $1 billion and entered into a special agreement that allows it to invest another billion next year (though at the same valuation for OpenAI), contingent upon the AI startup reaching its revenue targets. This target is particularly dependent on whether OpenAI is restructured as a commercial entity—if this does not occur within two years, investors may demand their money back.
Last week, Reuters reported that OpenAI is considering becoming a public benefit corporation (similar to Anthropic).
Other investors include Microsoft, Nvidia, and SoftBank, but not Apple, which declined to invest despite lengthy negotiations, notes Axios.
The Verge reports that OpenAI has asked investors not to support competing startups—specifically Anthropic and Elon Musk's xAI. It's worth mentioning that Musk raised $6 billion in funding back in May.
The valuation of OpenAI in this latest funding round exceeds its reported revenue by 40 times—an unprecedented figure that underscores the immense excitement surrounding AI in Silicon Valley.
According to The New York Times, OpenAI's monthly revenue reached $300 million in August, while the company anticipates a yearly sales volume of around $3.7 billion in 2024 (projecting its revenue to reach $11.6 billion next year).
“This funding will enable us to double down on our leadership in cutting-edge AI research, increase computing capacity, and continue building tools that help people solve complex problems,” OpenAI stated in a blog post.
It’s important to note that last week, OpenAI’s CTO Mira Murati and two leading researchers left the company amidst numerous reports of cultural conflicts between the product and safety teams. In May, Chief Scientist Ilya Sutskever also departed, revealing in June his plan to create his own AI startup focused on "safe superintelligence."
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