The long-discussed deal to raise additional capital for OpenAI was concluded this week, according to Bloomberg, allowing the startup to raise $6.6 billion and value its capitalization at $157 billion. Both amounts were higher than expected, and among the participants in this investment round were Microsoft and Nvidia.
Image source: Unsplash, Andrew Neel
In general, as sources explain, the decisive role in this round of financing was played by the venture investment fund Thrive Capital, which invested about $1.3 billion in OpenAI. Microsoft Corporation got away with $750 million, and compared to the $13 billion it had already invested earlier, this is not such a large amount. One way or another, the new round allowed OpenAI to become one of the three startups most supported by venture capitalists. This status was also once awarded to Elon Musk’s SpaceX and the TikTok social network of the Chinese company ByteDance.
Tiger Global Management invested its $350 million in OpenAI, Altimeter Capital was content with $250 million, according to unofficial data. OpenAI also managed to attract the attention of international investors. The Japanese corporation SoftBank, which owns Arm, invested $500 million, and MGX and Coatue contributed some amounts. From OpenAI’s messages it becomes known that it will use the funds received for further research in the field of artificial intelligence, as well as expanding its computing power. Representatives of Altimeter Capital said that the next logical step for OpenAI could be an IPO; they called this startup the most important AI company in the United States after Nvidia.
Apple did not participate in the deal, although it had previously participated in negotiations, as Bloomberg emphasizes. Part of the funds for OpenAI capital was raised through specially created project companies, which make it possible to raise funds from smaller investors to finance a specific project. At least Thrive Capital did not limit itself to its own funds, but attracted additional resources using just such a scheme. It is not specified whether the structural changes in OpenAI, which were previously actively discussed with potential investors, will be implemented. The company has 11 million subscribers to the ChatGPT Plus service, with more than 1 million corporate subscribers. Next year the company expects to earn more than $10 billion, but so far it remains unprofitable. In discussions with its investors, OpenAI has reportedly recommended that they refrain from funding rival companies like Anthropic and xAI.