OpenAI plans $6.5 billion funding round to potentially reach $150 billion valuation

From Investing.com: 2024-09-13 21:20:26

OpenAI plans a $6.5 billion funding round with convertible notes to potentially reach a $150 billion valuation. Investors include Microsoft, Thrive Capital, and potential new investors Nvidia and Apple. If the profit cap for investors is removed, early investors may receive bigger returns, but there are concerns about governance and mission.

The removal of the profit cap and potential switch to a for-profit structure raise questions about OpenAI’s direction and departure from its non-profit mission. OpenAI, with over 200 million ChatGPT users, has focused on commercialization and is seeking new funding to push for artificial general intelligence.

Investors in OpenAI have seen capped returns in previous rounds, with any excess going to the non-profit parent organization. OpenAI’s last valuation was $80 billion in February, with major investment from Microsoft, making it the most valuable AI startup. The upcoming funding round aims to push for significant growth in pursuit of artificial general intelligence.



Read more at Investing.com: Exclusive-OpenAI’s stunning $150 billion valuation hinges on upending corporate structure, sources say By Reuters