Source: AFP
The new funding has pushed ChatGPT maker OpenAI to a $157 billion valuation, the company said on Wednesday, sealing its position as a global leader in artificial intelligence.
The company, founded in 2015 and led by Sam Altman, said investors raised $6.6 billion in a funding round that was one of the largest in Silicon Valley.
“The new funding will allow us to double down on our leadership in cutting-edge AI research, increase computing power, and continue to build tools that help people solve hard problems,” OpenAI said in a blog post.
The investment was confirmed by Thrive Capital, the lead investor of the round.
Investors also include Microsoft, chipmaker Nvidia, Tiger Global and MGX, an investment firm controlled by the United Arab Emirates.
Apple, which uses OpenAI models in its new AI production offerings, recently pulled out of negotiations.
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The landmark cash infusion brought OpenAI on par with SpaceX and TikTok parent ByteDance as one of the world’s largest venture-backed companies.
OpenAI made headlines in 2022 when it released ChatGPT, its production artificial chatbot.
ChatGPT was one of the fastest downloaded apps ever, with users getting their first taste of the power of genetic AI, which can produce human-like content almost instantly after simple prompts.
The tech world sees genetic artificial intelligence as the next big chapter in innovation, on par with the computer or smartphone, expecting it to exponentially increase productivity in the workplace and at home.
According to the Financial Times, OpenAI imposed an exclusivity clause on investors, barring them from investing in rival AI startups such as Anthropic or Elon Musk’s xAI.
The cash infusion comes at a tumultuous time for OpenAI, with a series of key executive departures in recent months.
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Altman’s role within the company has also grown, less than a year after he was briefly fired from OpenAI’s board over his management style and for pushing new products too quickly.
The coup against Altman lasted only a few days after workers revolted and Microsoft, the company’s biggest investor, orchestrated his return.
Executives and board members who played roles in his exit have since left the company.
Reports said the investment round would likely come with a company reorganization that would make it an official “for-profit” company, more typical of Silicon Valley startups.
OpenAI, since its founding in 2015, has been run as a non-profit organization, with its money-making arm operating separately and without corporate control.
Altman is also reported to be acquiring shares in OpenAI with the new fundraising round, which would likely make him a multi-billionaire, though he has denied the reports.
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Another question on the table will be the handling of Elon Musk. The tech mogul was an early investor in OpenAI and has since sued the company for becoming a money-making enterprise.
Source: AFP
