OpenAI, the developer of ChatGPT, has secured $6.6 billion in new funding, valuing the company at $157 billion.
This development positions OpenAI as one of the world’s most valuable private companies. The funding round includes contributions from prominent investors like Thrive Capital, Khosla Ventures, Microsoft, and new participants such as Nvidia and Abu Dhabi’s state-backed MGX.
Despite executive changes, including the departure of Chief Technology Officer Mira Murati, investor interest remains strong, with projections suggesting the company could generate $11.6 billion in revenue next year.
OpenAI CFO Sarah Friar announced that liquidity options for employees may be available through a share buyback program following the funding.
The funding comes via convertible notes, conditional on OpenAI’s transformation into a for-profit entity. This would eliminate the current non-profit control and investor return caps. Investors have negotiated protections, allowing them to adjust their positions if the restructuring is not completed within two years.
OpenAI’s popularity has soared since the launch of ChatGPT, now boasting 250 million weekly active users. The company continues its quest for artificial general intelligence (AGI) while accelerating its commercialization efforts to meet ambitious financial goals.
