TL;DR
- Thrive Capital has invested about $1.25 billion with an option of investing another $1 billion in the company next year
- While the company will use the money to advance ChatGPT, it should also delegate a major chunk toward the development of artificial general intelligence.
- OpenAI will also offer employees a chance to sell their shares through an internal tender offer.
The most-valued AI startup in the world and creator of popular chatbot ChatGPT, OpenAI, has raised a whopping $6.6 billion in funding. With this investment round, the company’s valuation has skyrocketed to $157 billion. The funding comes from venture capital firms, including Khosla Ventures and Thrive Capital. OpenAI’s recent success with GPT-4o has also attracted a new investor, Nvidia. Here are more details about the investment round and how it will impact the developments at the Sam Altman-led company.
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Who Led The Latest OpenAI Investment Round?
According to a report from the Wall Street Journal, Thrive Capital has invested about $1.25 billion with an option of investing another $1 billion in the company next year if it meets a mutually agreed revenue goal. Apparently, this is the only investor with the option of investing at a one-year-old valuation. Given the company’s valuation rose from $14 billion to $157 billion in three years, there’s a good chance that it will increase further in 2025.
As mentioned in a report from Business Insider, SoftBank has invested $500 million in the latest round. This marks the firm’s return to generative AI-based businesses, as it has been holding back ever since ChatGPT came into existence. For those catching up, SoftBank has also invested in some popular Indian companies like Ola, Oyo, Paytm, Zomato, and Delhivery, all of which have made it big in India’s consumer-centric market.
While ARK Venture Fund invested around $250 million, OpenAI’s largest backer, Microsoft, bet just under $1 billion dollars. Last but not least, Nvidia invested around $100 million. Other companies like Fidelity, Altimeter Capital Management, and Tiger Global have also invested their money in OpenAI.
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What Will The Company Use This Money For?
While the company will use the money to advance ChatGPT, it should also delegate a major chunk toward the development of artificial general intelligence. While the company hasn’t announced it publicly, it is reportedly working on project Strawberry or what was initially called Q-Star, an AGI model that is much more advanced and capable than the current ChatGPT models. Rumors suggest that OpenAI could launch the AGI model by November 2024.
OpenAI will also offer employees a chance to sell their shares through an internal tender offer.
The Investment Comes Amid Major Corporate Restructuring
The ongoing investment round closes at a time when OpenAI is going through corporate restructuring. Most recently, the company’s long-time chief technology officer, Mira Murati, who was also appointed as the interim CEO when Sam Altman was ousted by the board of directors last year, resigned from the company. Along with her, several other executives have also parted ways in what seems to be a major hurl in the management.
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