OpenAI now valued at $157 billion after latest funding
Microsoft-backed artificial intelligence giant OpenAI has raised $6.6 billion in a new funding round, valuing the company at $157 billion. This further cements its position as one of the most valuable private companies in the world.
The funding round was led by venture capital firm Thrive Capital, which put up $1.3 billion. Microsoft, OpenAI’s largest backer with $13 billion already invested, injected another $750 million in the company, according to people familiar with the matter. OpenAI also received funding from Japan’s SoftBank, Santa Clara chipmaker giant Nvidia, and Cathie Wood’s Ark Investment Management.
“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,” OpenAI said.
The startup’s Chief Financial Officer, Sarah Friar, said, “AI is already personalizing learning, accelerating health care breakthroughs, and driving productivity.” She termed this “just the start.”
The latest funding round marks the startup’s value nearly doubling from the reportedly $80 billion it was valued at in February this year. It is also one of the largest-ever private investments.
Terms and conditions apply
Funding made by the investors can be pulled out if the nonprofit OpenAI is unable to convert into a for-profit business within two years. The Microsoft-backed reportedly told investors that they cannot invest in the company’s largest private rivals like Elon Musk’s?xAI, Anthropic, and?Safe Superintelligence, among others.
Furthermore, it establishes OpenAI as one of the three largest venture-backed startups. The other two largest venture-backed startups are Elon Musk’s SpaceX and TikTok owner ByteDance Ltd. It also underscores OpenAI’s position as a frontrunner in the AI race.
The hefty investment comes as the tech industry continues pouring in money in artificial intelligence and research powering its advancement. The closing of the funds coincides with the company’s ongoing restructuring efforts and executive changes.
