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OpenAI raises $6.6B funding at a valuation of $157B led by Thrive Capital
Category: Business News, Posted on: 07/10/2024 , Posted By: Ishika Agarwal
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OpenAI is an American artificial intelligence (AI) research organization consisting of two entities: OpenAI Inc., a nonprofit research segment, and OpenAI Global LLC, a for-profit subsidiary established to commercialize its AI technologies and applications. It was founded in 2015 by a consortium of researchers, scientists, and entrepreneurs; among the more notable founders are Sam Altman, Greg Brockman, Peter Thiel, and Elon Musk.

ChatGPT maker OpenAI has secured $6.6 billion funding from investors at a valuation of $157 billion.  The capital will be used to scale leadership in AI research, increase compute capacity, and fuel product development, said the company, in a blogpost. “We’ve raised $6.6B in new funding at a $157B post-money valuation to accelerate progress on our mission. The new funding will allow us to double down on our leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems," read the company’s blogpost. The funding round has attracted existing investors including Thrive Capital, Khosla Ventures, and Microsoftalong with new participation from US chipmaker giant NVIDIA, reports Reuters. According to the report, sources familiar to the matter revealed that Thrive Capital, which pledged around $1.2 billion through a mix of its own funds and a special purpose vehicle for smaller investors, secured the option to invest an additional $1 billion next year at the same valuation, provided the AI firm achieves a specific revenue target.“We aim to make advanced intelligence a widely accessible resource. We’re grateful to our investors for their trust in us, and we look forward to working with our partners, developers, and the broader community to shape an AI-powered ecosystem and future that benefits everyone. By collaborating with key partners, including the US and allied governments, we can unlock this technology's full potential,” said the company.  The closure of these funds follows the resignation of Mira Murati, Chief Technology Officer, who left after six-and-a-half years in her role. Several other high-ranking executives, including research chief Bob McGrew and research vice president Barret Zoph, have also exited the company. In May, co-founder Ilya Sutskever departed OpenAI to start a new AI venture called Safe Superintelligence Inc (SSI), partnering with former Y Combinator associate Daniel Gross and ex-OpenAI engineer Daniel Levy.

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