OpenAI Raises $6.6 Billion in New Funding Round
OpenAI has secured $6.6 billion in a new round of funding, bringing its value to $157 billion, making it one of the most valuable private companies in the world.
The investors bringing this new round of funds include previous OpenAI backers, venture capital investors Thrive Capital, Khosla Ventures, and Microsoft. New investors include chipmaker Nvidia, Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s state-backed investment firm MGX.
OpenAI will use the funding to secure its position as one of the leading AI technology companies while increasing its computing power and bringing more capabilities to the market. CFO Sarah Friar also advised employees that the funding would allow them to buy back shares, allowing employees to cash out their shares.
OpenAI said in its post announcing the new investment round, “We aim to make advanced intelligence a widely accessible resource. We’re grateful to our investors for their trust in us, and we look forward to working with our partners, developers, and the broader community to shape an AI-powered ecosystem and future that benefits everyone.”
The new investment comes in the form of convertible notes, meaning it will convert to company shares once OpenAI completes its restructuring into a for-profit business. This change will end the control of the non-profit board, but the non-profit board will keep a small ownership stake. The restructuring will also remove limits on investor profits.
The terms of the investment give OpenAI two years to finalize its restructuring. Otherwise, the investors can renegotiate the valuation or claw back their capital.
The restructuring conversations coincide with several departures of key leadership figures at OpenAI, including Chief Technology Officer Mira Murati, VP Research Barret Zoph, and Chief Research Officer Bob McGrew.
