OpenAI just raised $6.6B to build ever-larger AI models

OpenAI has successfully raised $6.6 billion in a funding round that values the company at $157 billion, aimed at advancing its mission to develop artificial general intelligence. The investment, led by Thrive Capital with a commitment of $1 billion, includes a unique provision allowing Thrive to invest an additional $1 billion next year if OpenAI meets specific revenue targets. This funding is contingent upon OpenAI restructuring into a for-profit entity within two years; otherwise, investors may reclaim their investments. OpenAI's current structure involves a nonprofit overseeing its for-profit operations, with investor returns capped at 100 times their investment. The company is also reportedly considering becoming a public benefit corporation. OpenAI has requested that its investors refrain from supporting competing startups, such as Anthropic and xAI. The funding round comes as OpenAI's monthly revenue reached $300 million in August, with projections of $3.7 billion in annual sales for the current year and $11.6 billion for the next. The funds will be allocated towards the costly development of advanced AI models, with estimates suggesting that training these models could reach costs of $100 billion in the near future.

- OpenAI raised $6.6 billion, valuing the company at $157 billion.

- The funding is contingent on restructuring into a for-profit company within two years.

- OpenAI's monthly revenue hit $300 million, with projected annual sales of $3.7 billion.

- Investors are asked to avoid backing rival startups like Anthropic and xAI.

- The funds will support the development of expensive AI frontier models.