OpenAI said on Wednesday (2nd) that it had completed its latest round of financing, raising US$6.6 billion, with the company valued at US$157 billion, ranking among the top unicorns in the field of artificial intelligence (AI), and also highlighting its commitment to artificial intelligence. Confidence is growing that this technology will become a key technology of the future.

This round of financing was led by Thrive Capital, an emerging American venture capital institution, with continued participation from Microsoft, while NVIDIA and SoftBank made their first investments in OpenAI. Thrive Capital has invested approximately $1.3 billion, of which approximately $750 million has been direct and $450 million has come from other sources. According to Bloomberg, Microsoft invested $750 million and SoftBank’s investment was approximately $500 million.

Other participating investors include Khosla Ventures, Altimeter Capital, Fidelity, Tiger Global and UAE-based MGX Investment Company, but they did not disclose the size of their investment. This significant inflow of funding is expected to aid OpenAI’s research efforts, expand its computing infrastructure, and drive the development of innovative solutions to address complex global challenges.

The technology media The Information once disclosed that OpenAI requires investors to have a minimum investment size of US$250 million. Therefore, OpenAI was rejected by Sequoia Capital and Apple during the financing process.

OpenAI's ability to attract such significant investment, despite struggling with internal leadership challenges and ongoing debate about a potential AI bubble, underscores the tech community's unwavering belief in the future of artificial intelligence. This latest funding round gives OpenAI a place among the world’s largest venture-backed startups, alongside industry giants like SpaceX and ByteDance. The investment marks one of the largest private financings in history and reflects the surge in demand for advanced AI solutions as OpenAI continues to innovate in AI technology.

OpenAI has made a name for itself in the field of generative AI, especially with the launch of ChatGPT in late 2022, which has attracted a lot of attention in the tech world. The company has maintained its growth momentum by launching new products aimed at enterprises and exploring AI-generated images and videos. OpenAI CFO Sarah Friar said the company reports 250 million active users on ChatGPT, with 1.1 million subscribing to ChatGPT Plus and 1 million enterprise users paying for the service.

"AI is already customizing education, accelerating advances in health care, and increasing productivity," Friar said. "And this is just the beginning."

The new round of funding will allow OpenAI to strengthen its position in advanced AI research, increase its computing capabilities, and continue to develop tools that enable individuals to tackle complex challenges. However, this growth comes at a cost, with OpenAI expected to increase its purchases of Huida's GPUs to train and run its massive language models. The company could face a loss of about $5 billion this year, sources said.

As a major partner of OpenAI, Microsoft has invested billions of dollars in it and is working with the AI ​​company to enhance its Azure cloud services. Earlier this year, OpenAI's valuation was reported at $80 billion, reflecting a substantial $29 billion increase in just three months. ChatGPT's rapid growth has fueled OpenAI's momentum even as the company faces challenges including the departure of key executives and ongoing discussions about restructuring into a for-profit entity. Bret Taylor, chairman of the OpenAI board of directors, clarified that the departures were not related to a potential reorganization, refuting claims in some media outlets.

At a recent all-hands meeting, CEO Sam Altman dismissed rumors that he planned to acquire a "significant stake" in the company as "untrue," according to attendees.

In addition, according to the British (Financial Times) report, OpenAI has issued special requirements for investors, asking them to avoid investing in rival startups, such as Anthropic and Musk’s xAI. This requirement has attracted widespread attention in the industry because it may affect investor decision-making and the market competition landscape. In May of this year, Musk’s xAI announced that it had raised US$6 billion in financing and sold 25% of the company’s shares; today OpenAI has raised US$6.6 billion and only sold about 4% of its shares.

According to OpenAI’s plan, the company needs to completely reorganize into a for-profit enterprise within two years. If it fails to complete as scheduled, it will face the risk of converting this financing into debt. This transformation process involves complex legal procedures, and OpenAI needs to reallocate assets in accordance with U.S. law, which is rare in the industry.

"OpenAI completed its latest round of financing of US$6.6 billion, with a valuation of US$157 billion." This article was first published on (Block Guest).