OpenAI, the San Francisco-based AI company behind the popular ChatGPT chatbot, has successfully raised $6.6bn (£5bn) in its latest funding round, bringing its valuation to $157bn.
The round was led by US venture capital firm Thrive Capital, with notable contributions from Nvidia, SoftBank, and MGX, an Abu Dhabi-backed investment firm.
The funding elevates OpenAI to the same valuation as companies like Uber but remains far behind its biggest backer, Microsoft, whose valuation sits at a staggering $3tn.
Microsoft, a key player in this round, continues to hold a significant stake in OpenAI, especially in its for-profit subsidiary, where it is the largest investor.
OpenAI has been seeing remarkable growth, with its flagship product, ChatGPT, now boasting over 250 million weekly active users.
ChatGPT’s 250 million users drive growth, while OpenAI explores restructuring for-profit shift.Sarah Friar, OpenAI’s CFO, noted that the chatbot is being leveraged for various applications, from personalizing learning experiences to accelerating healthcare advancements and boosting productivity across industries.
“AI is already making a profound impact, and this is just the beginning,” Friar remarked.
Despite its rapid expansion, OpenAI is projected to face a $5bn loss this year. The newly acquired funds will help the company bolster its AI research and expand its computing capacity—vital for developing and running complex AI models.
However, OpenAI’s reported shift towards a for-profit structure, which could involve restructuring its operations, has sparked concerns.
Critics, including former employee William Saunders, worry that this may compromise safety standards as OpenAI prioritizes financial growth.
As it prepares to potentially shed its non-profit status, OpenAI remains committed to developing artificial general intelligence (AGI), systems it believes will be smarter than humans, to benefit all of humanity.