OpenAI successfully raises $6.6 billion

Artificial intelligence company OpenAI has raised an additional $6.6 billion from institutional investors, valuing the company at $157 billion, according to CNBC. Participating institutions in this round include Thrive Capital, Khosla Ventures, SoftBank, and technology giants Nvidia and Microsoft.

It is reported that OpenAI raised funds in the form of convertible bonds in this financing, which can be converted into equity when the company successfully transforms into a for-profit commercial entity with unrestricted profits and gets rid of the profit return cap and the need for non-profit governance. Structural dependencies.

OpenAI plans to transform into a profit model

OpenAI is said to be restructured and transformed into a purely for-profit business model. However, this transition requires overcoming regulatory complexities and raises questions about the legality of such a restructuring.

After OpenAI announced its intention to change its business model, its co-founder Elon Musk immediately publicly criticized the transformation as "illegal." However, regulations in California, where OpenAI is based, allow nonprofit companies to convert into for-profit companies through a complex process. Convert the company first to a for-profit corporation and then to a limited liability company (LLC).

OpenAI, on the other hand, is looking to expand its revenue streams to justify its more than $150 billion valuation, exploring high-end subscription plans that could cost as much as $2,000 per month. In September 2024, OpenAI announced that its product suite had 1 million users, a 67% increase from April 2024.

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