OpenAI has announced the closure of a historic funding round, reaching a post-money valuation of $852 billion. The round, which totaled $122 billion of committed capital, exceeded the initial $110 billion figure announced in February. This significant increase underscores the growing confidence in the company's potential as it gears up for a possible IPO.
SoftBank co-led the funding round alongside other prominent investors, including Andreessen Horowitz and D. E. Shaw Ventures. OpenAI also extended participation to investors through bank channels for the first time, raising an additional $3 billion from individual investors. Microsoft, a longtime partner of OpenAI, participated in the round, although the size of its investment was not disclosed.
OpenAI reported generating $2 billion in revenue per month, amounting to $13.1 billion in revenue for the previous year. Despite this substantial income, the company is still not profitable and continues to burn cash. The funding round's success suggests that investors are willing to overlook short-term profitability in favor of the company's long-term growth prospects.
Amazon, Nvidia, and SoftBank had previously committed $110 billion, with Amazon agreeing to invest up to $50 billion, Nvidia investing $30 billion, and SoftBank also investing $30 billion. The additional $12 billion came from a broader pool of investors. OpenAI's CEO, Sam Altman, will be under pressure to justify the company's massive valuation as it prepares for a potential IPO.
OpenAI's ChatGPT chatbot, launched in 2022, has been a catalyst for the company's rapid growth, now supporting over 900 million weekly active users, including more than 50 million subscribers. The company's statement highlights AI's role in driving productivity gains, accelerating scientific discovery, and expanding the capabilities of individuals and organizations. The funding will enable OpenAI to continue leading at a scale that meets the demands of the current market.