OpenAI’s valuation soars to $157 billion after major funding

Increased valuation for the company.
OpenAI’s image tool is now free for all users, though limits remain unclear. Meanwhile, the company has secured $40 billion in funding at a $300 billion valuation.

OpenAI, the company behind ChatGPT, has raised $6.6 billion in new funding, pushing its valuation to an estimated $157 billion. The funding round saw participation from major investors such as Microsoft, Nvidia, Thrive Capital, and Khosla Ventures. Despite recent restructuring and the sudden exit of longtime Chief Technology Officer Mira Murati, investor confidence remains high, with many believing in the company’s strong growth potential. Thrive Capital alone has committed $1.2 billion and may invest another $1 billion next year if revenue targets are met.

OpenAI is in the midst of restructuring, moving away from its non-profit origins towards a more commercial, for-profit model. The recent funding could convert into equity if this transition succeeds. CFO Sarah Friar suggested a potential buyback of employee shares, though no concrete plans have been set. Investors have also secured protections, allowing them to renegotiate the valuation if the restructuring is not finalised within two years.

Since launching ChatGPT, OpenAI has seen rapid growth, attracting 250 million weekly active users. Despite incurring heavy losses, the company anticipates generating $3.6 billion in revenue this year, with projections reaching $11.6 billion in 2024. As it scales, OpenAI remains committed to its pursuit of artificial general intelligence (AGI), aiming to advance AI capabilities while moving towards profitability.