The business that created ChatGPT, OpenAI, has collected $6.6 billion from investors, potentially making it one of the world's most valuable private corporations with a valuation of $157 billion.
Returning venture capitalists Thrive Capital and Khosla Ventures, together with Microsoft, the largest corporate supporter of OpenAI, and Nvidia have all contributed to the investment.
The funds' closure takes place in tandem with the business's continuing attempts to restructure and replace key executives, including the unexpected exit of Mira Murati, the company's longstanding chief technology officer, last week.
According to a source, OpenAI Chief Financial Officer Sarah Friar informed staff members on Wednesday that the firm would be able to provide liquidity for them through a tender offer to purchase back their company shares after the fundraising. However, no specifics or timeframe have been determined. At a $86 billion value, the corporation let a few workers to cash out their shares earlier this year.
Based on other sources, Thrive Capital secured the option to invest an additional $1 billion at the same valuation next year if the AI company meets a sales target. Thrive Capital invested around $1.2 billion from a combination of its own fund and a special purpose vehicle for smaller investors.
The investment was provided in the form of convertible notes, and the conversion to equity is contingent upon the elimination of the investor return cap and a successful structural transformation into a for-profit company that is independent of the non-profit board.
Most investors remain enthusiastic despite the staff changes; based on OpenAI CEO Sam Altman's estimates, they expect big growth.
Despite growing losses of more than $5 billion, the corporation is expected to make $3.6 billion in revenue this year. It anticipates a significant revenue increase to $11.6 billion in 2025.
The world is captivated by OpenAI's explosive progress in both product popularity and valuation. ChatGPT has drawn 250 million weekly active users since its introduction. In addition, the company's valuation increased from $14 billion in 2021 to $157 billion while its revenue increased from $0 to $3.6 billion, significantly surpassing Altman's own initial estimates.
(Sources: investing.com, reuters.com)
