OpenAI has secured $6.6 billion from investors, potentially valuing the company at $157 billion and solidifying its position as one of the most valuable private firms globally, with returning venture capital investors like Thrive Capital and Khosla Ventures, along with major corporate supporter Microsoft and new participant Nvidia showing interests in the funding round.
The funding aligns with OpenAI’s ongoing restructuring efforts and recent executive changes that saw the departure of Chief Technology Officer Mira Murati. Notable participants in the funding round include Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s state-backed investment firm MGX.
OpenAI’s Chief Financial Officer, Sarah Friar, revealed plans to offer liquidity to employees through a share buyback program following the funding infusion, although specific details and timelines are yet to be finalized.
Thrive Capital, one of the key investors, negotiated an option to inject an additional $1 billion next year at the same valuation if OpenAI achieves a specified revenue target.
While Apple was reportedly in talks to participate in the funding, sources indicated that the tech giant ultimately decided not to join. The funding was structured through convertible notes with the conversion to equity contingent on OpenAI’s transition into a for-profit entity, with changes to corporate governance and investor returns.
Despite recent personnel changes, most investors remain bullish on OpenAI’s growth prospects, buoyed by CEO Sam Altman’s forecasts. The company is projected to hit $3.6 billion in revenue this year, with expectations of a substantial revenue surge to $11.6 billion next year, sources familiar with the figures disclosed.
Meanwhile, investors also negotiated safeguards as OpenAI navigates its complex restructuring, including options to reclaim capital or renegotiate valuations if structural changes are not executed within two years.
OpenAI remains committed to actively pursuing artificial general intelligence (AGI), referring to the development of AI systems that surpass human intelligence. This initiative is being undertaken as the company intensifies its commercialization efforts and strives towards profitability.
