OpenAI has successfully closed a highly anticipated funding round, raising $6.6 billion and boosting its post-money valuation to $157 billion.
The round was led by Thrive Capital, with major participation from Microsoft, Nvidia, and SoftBank, according to sources familiar with the matter. Thrive reportedly contributed $1 billion to the funding, as previously reported by CNBC.
OpenAI’s rapid rise since launching ChatGPT in late 2022 has been one of the most significant developments in the tech industry. The company’s pioneering role in generative artificial intelligence has attracted massive investments in AI infrastructure, reshaping the landscape of digital innovation.
In a statement on Wednesday, OpenAI noted that the new capital will support its leadership in AI research, expand its computational capacity, and continue building advanced tools.
“This funding will allow us to double down on our leadership in frontier AI research,” the company noted in a blog post.
Microsoft, a long-term partner of OpenAI, expressed excitement about the ongoing collaboration. “We look forward to continuing our partnership with OpenAI,” a Microsoft spokesperson said.
OpenAI's revenue has surged, with the company generating $300 million last month - an increase of 1,700% compared to the start of 2023.
Despite its impressive revenue growth, OpenAI faces substantial costs, largely driven by its need to acquire Nvidia’s GPUs for training its large language models.
The company is projected to incur a loss of $5 billion this year. Microsoft, which has invested billions into OpenAI, is also benefiting from the partnership as it strengthens its Azure cloud services.
OpenAI’s valuation has soared this year, climbing from $80 billion earlier in 2024, up from $29 billion in 2023, thanks to the viral success of ChatGPT and new AI-driven products, including tools for businesses and AI-generated visuals.
ChatGPT now boasts 250 million weekly active users, with 11 million subscribers to ChatGPT Plus and 1 million paying business users, according to CFO Sarah Friar.
“AI is already personalising learning, accelerating healthcare breakthroughs, and driving productivity,” Friar said, adding that OpenAI is just getting started.
The company has faced internal challenges, including the recent departure of several key executives. Last week, Chief Technology Officer Mira Murati, along with research chief Bob McGrew and Vice President Barret Zoph, announced their exits.
CEO Sam Altman acknowledged the transitions during Italian Tech Week, expressing confidence in OpenAI’s future growth.
Amid discussions about restructuring OpenAI into a for-profit company, Altman denied media reports suggesting he would receive a large equity stake, calling the claims “just not true.”
OpenAI Chairman Bret Taylor confirmed that while the board has discussed the idea of equity compensation for Altman, no specific decisions have been made.