The giant funding round gives OpenAI a post-money valuation of $852bn.
Artificial intelligence company OpenAI has announced the closure of a recent funding round at $122bn, exceeding the projected figure of $110bn.
The round was backed by strategic partners Amazon, Nvidia and SoftBank, with continued participation from OpenAI’s long-term partner Microsoft. SoftBank co-led the round alongside a16z, DE Shaw Ventures, MGX, TPG and accounts advised by T Rowe Price Associates. There was also participation from several global institutions.
For the first time, OpenAI extended participation to investors through banking channels, raising more than $3bn from individual investors. The funding round gives OpenAI a post-money valuation of $852bn, the company said.
In a post about the announcement, OpenAI said, “This is commercial scale and it is mission scale. The fastest way to widen the benefits of AI is to put useful intelligence in people’s hands early and let that access compound globally.
“AI is driving productivity gains, accelerating scientific discovery and expanding what people and organisations can build. This funding gives us the resources to continue to lead at the scale this moment demands.”
The announcement comes at a time when OpenAI is calling a halt to specific features and products, as it aims to better manage costs and reprioritise resources. For example, plans for an erotic ChatGPT were reportedly put on hold indefinitely, as OpenAI elected to carry out additional research and to address concerns from staff and investors.
Additionally, in late March, the platform revealed plans to shut down controversial AI video generator Sora just a few months after announcing a multi-year licensing deal with Disney. OpenAI explained that bybending the feature, the organisation can redirect its focus onto other projects.
OpenAI is facing significant challenges from rivals in the AI space and recently news surfaced indicating the company’s plans to combine its AI chatbot, coding tool and web browser into a desktop ‘superapp’.
Sources noted that the move is intended to counter harsh competition from the AI giant’s rivals, such as Anthropic.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
