(Source-coingape.com)
OpenAI is reportedly in discussions to raise approximately $6.5 billion in a funding round that could value the company at around $150 billion, according to sources familiar with the talks. This marks a nearly $70 billion increase from its valuation just nine months ago, positioning OpenAI funding as one of the most valuable private companies globally, second only to ByteDance, the parent company of TikTok.
The new funding round, expected to be led by Thrive Capital, is attracting the attention of major players like Apple, Nvidia, and Microsoft. Originally, OpenAI funding had aimed to raise $1 billion at a $100 billion valuation, but the growing demand for artificial intelligence (AI) technology has propelled it to surpass that goal.
Continued Growth Amid AI Boom
OpenAI has been a key player in the AI industry, launching the popular chatbot ChatGPT in late 2022, which sparked a global AI boom. While interest in some AI startups has waned in recent months, OpenAI has continued to expand. Backed by $13 billion in funding from Microsoft, the company has built upon the frenzy surrounding ChatGPT, launching more powerful AI models and technologies that generate images and videos.
The company has also significantly increased its workforce, hiring over 1,000 new employees in the last nine months, bringing its total to more than 1,700. If the new deal is completed, OpenAI’s valuation would surpass SpaceX and nearly double that of Intel, which has struggled to keep pace with the AI revolution.
Challenges and Concerns of OpenAI Funding
Despite its rapid growth, OpenAI funding has faced challenges. The company has had public leadership issues, including the sudden firing of CEO Sam Altman in 2023, followed by his swift reinstatement. The turmoil led to the departure of several high-profile employees, including co-founder Ilya Sutskever. Concerns have also been raised about the potential risks associated with OpenAI’s technology, such as spreading disinformation or enabling cyberattacks. The company has acknowledged these concerns and is working to ensure the safety of its AI systems.
Turning AI Innovation into Profit
OpenAI is working to transform its AI technologies into revenue-generating products. It is reportedly generating over $2 billion annually through subscriptions to ChatGPT and other services. To further support its business transition, the company has brought in seasoned Silicon Valley executives, such as Sarah Friar and Kevin Weil, to help shift its focus from research to profitability. CEO Sam Altman’s strategic fundraising efforts have kept investor enthusiasm high, helping OpenAI remain a dominant force in the AI sector.
Also, Read – The Enterprise weird
