OpenAI Raises $6.6B in Largest VC Round, Valued at $157B

Oct 2, 2024, 05:10 PM

OpenAI has successfully closed a new funding round, raising $6.6 billion and achieving a valuation of $157 billion. This funding round, led by Thrive Capital and including significant investments from Microsoft, Nvidia, and SoftBank, is the largest venture capital round ever. The company, known for its ChatGPT product with 350 million users, plans to shift from a nonprofit to a for-profit structure. CEO Sam Altman has asked investors not to back rival startups such as Elon Musk’s xAI and Anthropic. OpenAI's revenue is expected to reach $3.7 billion this year, despite burning cash at a rate that results in a $5 billion loss. The company has also allowed employees to sell shares following this funding round. This marks one of the largest-ever private investments, solidifying OpenAI's position as a leading AI powerhouse.