OpenAI Doubles Valuation to $157 Billion After Record-Breaking Funding Round

OpenAI, the company behind ChatGPT, has nearly doubled its valuation to $157 billion following the largest venture capital deal in history. This move positions the generative artificial intelligence (GenAI) firm as the third-largest venture-backed company worldwide, trailing only SpaceX and ByteDance.

The company announced it raised $6.6 billion in its latest funding round, with the funds earmarked to “accelerate progress” toward its mission. OpenAI outlined in a statement shared with Euronews Next that the capital would be used to further AI research, increase computing power, and develop tools to solve complex challenges.

This announcement comes amidst reports that OpenAI is contemplating a shift to a for-profit benefit corporation, moving away from its current governance by a non-profit board. The company, founded in 2015 and led by Sam Altman, appears to be preparing for significant operational and structural changes in the near future.

The latest funding round was spearheaded by Thrive Capital and included participation from SoftBank, Microsoft, Nvidia, Tiger Global, and MGX, an investment firm controlled by the United Arab Emirates (UAE). Notably, the Financial Times reported that OpenAI placed an exclusivity clause on investors, preventing them from funding rival AI startups such as Anthropic or Elon Musk’s xAI. Apple, which had been in discussions to participate in the funding round, reportedly pulled out of negotiations.

Sarah Friar, OpenAI’s Chief Financial Officer, highlighted the growing impact of AI, pointing out that over 250 million people use ChatGPT weekly to tackle a wide range of challenges, from language translation to complex research problems. She emphasized that AI is already making strides in areas such as personalized learning, healthcare innovation, and boosting productivity, noting that these advances are just the beginning.

Recent internal developments at OpenAI have also drawn attention. Last month, Altman referred to the company as “not a normal company” in a memo following the resignation of Chief Technology Officer Mira Murati. The company had faced internal turmoil when Altman was briefly ousted by OpenAI’s board, who expressed concerns over his management style and the rapid pace at which new products were being introduced. The situation quickly reversed after employees threatened to leave, prompting Microsoft, OpenAI’s largest investor, to step in and facilitate Altman’s return.

The potential transition to a for-profit benefit corporation has also sparked discussions regarding Altman’s compensation. Reports suggest that Altman may soon receive equity in the company. OpenAI confirmed to Euronews Next that the board had discussed the possibility of compensating Altman with equity but clarified that no specific figures had been decided upon, and no formal decisions had been made.

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