Now the world’s third largest venture-backed company, OpenAI has signalled that it will further boost its AI research.
OpenAI has almost doubled its valuation to $157 billion (€142 billion) after the largest venture capital deal ever, making the ChatGPT maker the third-largest venture-backed company globally behind SpaceX and ByteDance.
The generative artificial intelligence (GenAI) company said it raised $6.6 billion (€6 billion) on Wednesday which would be used to “accelerate progress” in its mission, OpenAI said in a statement shared with Euronews Next.
The announcement comes shortly after multiple reports that the start-up is considering transforming into a for-profit benefit corporation, which will no longer be controlled by its non-profit board.
The company, which was founded in 2015 and led by Sam Altman, said it plans to use the funds for AI research, increase computing capacity, and develop tools for solving complex problems.
Thrive Capital led the funding round, with participation from SoftBank, Microsoft, Nvidia, Tiger Global, and MGX, an investment firm controlled by the United Arab Emirates (UAE).
According to the Financial Times, OpenAI imposed a condition of exclusivity on investors, which prevents them from investing in rival AI startups, such as Anthropic or Elon Musk’s xAI.
Apple, which uses OpenAI, reportedly withdrew from negotiations on participating in the funding.
“Every week, over 250 million people turn to ChatGPT regardless of the scale of the challenge – whether it’s communicating with someone who speaks another language or solving the toughest research problems,” Sarah Friar, OpenAI’s Chief Financial Officer, said in a statement.
“AI is already personalising learning, accelerating healthcare breakthroughs, and driving productivity. And this is just the start,” she added.
‘Not a normal company’
OpenAI boss Altman said last month that it was “not a normal company” in a memo announcing the company’s chief technology officer Mira Murati had resigned.
The company has also seen inner turmoil with Altman being briefly fired by the OpenAI board over his management style and for rolling out new products too quickly, sparking safety concerns.
The coup against Altman lasted a few days after employees said they would leave OpenAI. Microsoft, the company’s biggest investor, then orchestrated his return.
Last month, multiple reports said that the start-up is considering transforming into a for-profit benefit corporation, which will no longer be controlled by its non-profit board.
Altman is also reported to be getting equity in OpenAI.
The company told Euronews Next that “the board has had discussions about whether it would be beneficial to the company and our mission to have Sam be compensated with equity,” but added that “no specific figures have been discussed nor have any decisions been made”.