OpenAI has raised a groundbreaking $6.6 billion investment, boosting its valuation to an impressive $157 billion. According to the company, this funding will support its ongoing mission to develop artificial general intelligence (AGI).
Leading the funding round was Thrive Capital, contributing $1 billion. Thrive also secured a special deal allowing an additional $1 billion investment next year if OpenAI meets specific revenue targets, per Reuters.
The investment is reportedly tied to a possible restructuring of OpenAI as a for-profit company. While its current for-profit division is managed by a nonprofit, investor returns are capped at 100x. Axios reports that if OpenAI doesn’t reorganize into a for-profit entity within two years, investors can demand their money back. OpenAI is also rumored to be considering a shift to a public benefit corporation model, similar to Anthropic.
In an unusual move, OpenAI has asked investors to refrain from supporting competing AI startups like Anthropic or Elon Musk’s xAI, The Financial Times noted. Notably, this funding round surpasses xAI’s $6 billion raise in May.
OpenAI’s recent valuation is roughly 40 times its current revenue, reflecting the immense interest in AI innovation. The company reportedly generated $300 million in monthly revenue as of August, with annual sales projected at $3.7 billion this year, rising to an estimated $11.6 billion in 2025.
These funds will be crucial as OpenAI tackles the enormous expense of training cutting-edge AI models. According to Anthropic CEO Dario Amodei, AI models costing $1 billion to train are already in development, with $100 billion models on the horizon. For OpenAI, which is focused on creating sophisticated reasoning models, the costs will only escalate, making this infusion of capital essential.
