OpenAI Valuation: Reportedly Raises $8.3B at $300B

OpenAI Secures $8.3 Billion in Funding

According to reports from The New York Times, OpenAI, the company behind ChatGPT, has successfully raised $8.3 billion. This substantial investment results in a company valuation of $300 billion.

This funding round is a key component of OpenAI’s larger plan to amass $40 billion in capital throughout the current year.

Accelerated Funding Timeline

The investment was finalized significantly ahead of the initial schedule outlined by the NYT. OpenAI initially secured $2.5 billion from various venture capital firms back in March.

At that time, the company announced its intention to raise a total of $40 billion, with SoftBank leading the effort. While an additional $7.5 billion was planned for later in the year, investor enthusiasm propelled the process forward.

Impressive Growth and Revenue

Recent reports from The Information indicated that OpenAI has achieved an annualized revenue of $12 billion. Furthermore, ChatGPT has exceeded 700 million weekly active users.

However, The Times now suggests the revenue figure is closer to $13 billion, with forecasts predicting it will reach $20 billion by year's end. Favorable conditions, such as the Trump administration’s AI Action Plan and ongoing discussions with Microsoft, are also contributing to this growth.

Key Investors in the Round

Dragoneer Investment Group spearheaded the funding round, contributing a remarkable $2.8 billion. A diverse group of new investors participated in this significant financial injection.

These include prominent private equity firms like Blackstone and TPG, alongside mutual fund manager T. Rowe Price. Additional participants encompass Altimeter Capital, Andreessen Horowitz, Coatue Management, D1 Capital Partners, Fidelity Management, Founders Fund, Sequoia Capital, Tiger Global, and Thrive Capital.

Allocation Concerns Among Early Investors

It has been reported that some of OpenAI’s earlier investors expressed disappointment regarding their comparatively smaller allocations in this round.

The company seemingly prioritized onboarding new, strategic investors to further bolster its position.

OpenAI's Response

TechCrunch has contacted OpenAI seeking further comment on these developments.

ChatGPT’s continued success and the increasing demand for AI technologies are driving this substantial investment.