OpenAI raises $6.6B and is now valued at $157B
OpenAI raised $6.6 billion, achieving a $157 billion valuation, led by Thrive Capital. The funding will enhance AI research and operations, with a goal of $100 billion revenue by 2029.
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OpenAI has successfully raised $6.6 billion in a funding round, achieving a post-money valuation of $157 billion, making it the most funded AI startup globally. The round was led by Thrive Capital, which invested approximately $1.3 billion, with participation from major investors including Microsoft, Nvidia, and SoftBank. This funding will support OpenAI's expansion in AI research, increase its computing capacity, and enhance its product offerings. OpenAI has reportedly spent around $7 billion on model training and $1.5 billion on staffing, with significant operational costs associated with running its AI systems. The company aims to reach $100 billion in revenue by 2029, despite facing intense competition from other AI ventures. Additionally, OpenAI is considering a shift from its current nonprofit governance structure to a for-profit model, which could provide more flexibility in raising capital. However, the company has experienced executive turnover, with several key leaders resigning recently, raising questions about its strategic direction.
- OpenAI raised $6.6 billion, reaching a valuation of $157 billion.
- Major investors include Thrive Capital, Microsoft, Nvidia, and SoftBank.
- The funding will enhance AI research and operational capacity.
- OpenAI aims for $100 billion in revenue by 2029 amid competitive pressures.
- The company is contemplating a shift to a for-profit governance model.
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