OpenAI Secures Record $6.6B Funding, Valued at $157B
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OpenAI, the company behind ChatGPT, has secured a record-breaking $6.6 billion in funding, valuing the company at $157 billion post-money. This latest round brings OpenAI’s total funding to $17.9 billion, solidifying its position as the world’s best-funded AI startup.
Key details of the funding round include:
- Led by previous investor Thrive Capital, which invested $1.3 billion
- Other participants: Microsoft, Nvidia, SoftBank, Khosla Ventures, Altimeter Capital, Fidelity, and MGX
- Thrive Capital has an exclusive option to invest up to $1 billion more at the same valuation through 2025
OpenAI plans to use the new funding to:
- Expand frontier AI research
- Increase compute capacity
- Continue developing tools for problem-solving
The company’s rapid growth is evident in its user base and revenue:
- ChatGPT has over 250 million users, including 10 million paying subscribers
- Annualized revenue has reportedly exceeded $3.4 billion
- ChatGPT alone could generate $2.7 billion in revenue this year
However, OpenAI faces significant operational costs:
- Approximately $7 billion spent on model training
- $1.5 billion allocated for staffing
- ChatGPT previously cost $700,000 per day to run
The company is also considering structural changes, potentially moving away from its current nonprofit governance model. This shift could allow for greater fundraising flexibility and the ability to pursue capital-intensive projects such as AI chip development and data center construction.
Despite its market-leading position, OpenAI faces growing competition from companies like Anthropic, xAI, Google, and Amazon. The company is also dealing with recent executive departures, including its CTO and chief research officer.
For more details on OpenAI’s latest developments and ChatGPT, check out TechCrunch’s comprehensive guide to ChatGPT.
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