Major players like Microsoft, Nvidia, and Thrive Capital participated in the funding round, underscoring OpenAI’s dominant position in the booming artificial intelligence market.
The investment round saw a mix of returning and new investors, with Thrive Capital, Khosla Ventures, and Microsoft leading the pack. Nvidia joined as a first-time investor, alongside participation from Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s MGX.
As part of the deal, OpenAI plans to offer employees an opportunity to sell their shares via a tender offer, a follow-up to earlier this year when some employees cashed out at an $86 billion valuation. Thrive Capital has also secured an option to invest an additional $1 billion next year if OpenAI hits specific revenue targets.
The funding coincides with major restructuring efforts, as OpenAI shifts from a non-profit to a for-profit structure to attract more capital and maximize investor returns. However, the transition hasn’t been without challenges, including the unexpected resignation of CTO Mira Murati last week.
Despite these changes, OpenAI projects its revenue to surge to $11.6 billion next year, a dramatic increase from the $3.6 billion expected in 2024, even as losses are forecasted to exceed $5 billion. Safeguards have been built into the investment deal, allowing investors to reclaim funds or renegotiate terms if the restructuring isn’t completed in two years.
OpenAI’s flagship product, ChatGPT, continues to shine, with 250 million weekly active users driving rapid revenue growth.
