OpenAI has secured $6.6 billion in funding, potentially valuing the company at $157 billion. Despite recent leadership changes, investor confidence remains strong, with projections of $3.6 billion in revenue this year and expectations for significant growth ahead.
OpenAI, the creator of ChatGPT, has successfully raised $6.6 billion in funding, potentially valuing the company at $157 billion and reinforcing its status as one of the world’s most valuable private firms. The investment round saw participation from returning venture capital firms like Thrive Capital and Khosla Ventures, alongside significant contributions from Microsoft and Nvidia.
This funding comes during a time of significant restructuring within OpenAI, marked by recent leadership changes, including the unexpected departure of longtime Chief Technology Officer Mira Murati. Other investors in this funding round included Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s MGX.
OpenAI's Chief Financial Officer Sarah Friar informed employees that the company plans to provide liquidity through a share buyback program, though details and timing are yet to be confirmed. Earlier this year, some employees had the chance to cash out shares at a valuation of $86 billion.
Thrive Capital, which contributed around $1.2 billion, has an option to invest an additional $1 billion next year if OpenAI meets certain revenue targets.Despite initial discussions, Apple ultimately chose not to participate in the funding.
The investment comes as convertible notes, contingent on OpenAI transitioning to a for-profit structure that would loosen current return caps for investors.
The recent management changes have not diminished investor optimism, as they anticipate robust growth following projections from CEO Sam Altman. OpenAI is on track to generate $3.6 billion in revenue this year, despite losses exceeding $5 billion, with expectations of a significant revenue surge to $11.6 billion next year.
Since launching ChatGPT, the company has gained 250 million weekly active users and seen its valuation soar from $14 billion in 2021 to $157 billion, surpassing earlier revenue projections.
The global oil market may be tighter than headline supply-demand figures suggest, the International Energy Agency (IEA) said Friday, citing rising ref...
European shares dropped on Friday after President Donald Trump intensified tariff threats against the EU, casting doubt on trade talks and dampening i...
China’s exports are expected to have grown 5% in June as manufacturers hurried goods abroad ahead of a 12 August deadline that could see the U.S. re...
U.S. special envoy for Ukraine, Keith Kellogg, is set to arrive in Kyiv on Monday for a week-long visit, Ukrainian outlet Novyny.LIVE reported on Frid...
Kazakhstan's Ministry of Transport and Afghanistan's Ministry of Public Works have reached an agreement on the construction of a new railway line to c...
Nvidia has made history as the first publicly traded company to surpass a $4 trillion market value, driven by an AI-fuelled investor boom.
An impostor used artificial intelligence to mimic Secretary of State Marco Rubio’s voice and writing style, contacting top U.S. and foreign officials in a bold deception campaign.
Huawei’s AI research unit has rejected allegations that its Pangu Pro Moe model copied Alibaba’s Qwen 2.5, insisting it was independently developed.
The European Commission has dismissed industry calls to delay the rollout of its landmark AI Act, confirming that the law will proceed according to its legally established timeline.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
A deadly mass shooting early on Monday (7 July) in Philadelphia's Grays Ferry neighbourhood left three men dead and nine others wounded, including teenagers, as more than 100 shots were fired.
The 17th Summit of the Economic Cooperation Organization (ECO) was successfully held in Khankendi, Azerbaijan, highlighting the region’s revival and the deepening economic cooperation among member states.
Dozens of international and domestic flights were cancelled or delayed after Mount Lewotobi Laki Laki erupted on Monday, but Bali’s main airport remains operational.
European shares dropped on Friday after President Donald Trump intensified tariff threats against the EU, casting doubt on trade talks and dampening investor confidence.
Turkmenistan has gathered 1.407 million tonnes of wheat, matching its 2025 goal after a round-the-clock harvest on 690,000 hectares that officials say was bolstered by new combines and higher state purchase prices.
Azerbaijan Railways CJSC signed a Memorandum of Understanding with the Chinese company 'Xi'an Free Trade Port Construction and Operation' and has opened its representative office and container terminal in the Xi'an International Port.
The UK and Japan have signed a Memorandum of Cooperation (MoC) aimed at enabling increased UK investment into Japan, further strengthening the economic ties between the two nations.
German inflation eased to 2.0% in June, the federal statistics office said on Thursday, confirming preliminary data.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment