- OpenAI has soared to all-new heights with its valuation after raising US$6.6 billion (AU$9.6 billion) in its latest funding round, led by Thrive Capital.
- This represents a significant increase from the last appraisal back in February; the non-profit organisation has also hired over 1,000 employees since then, bringing the headcount total to approximately 1,700.
- But now, the race is on to become a for-profit firm.
It’s difficult to assign a tangible dollar figure to what is seemingly unlimited potential. But you can always leave it to the tech world to try anyway.
OpenAI has successfully raised US$6.6 billion (AU$9.6 billion) in a new round of funding led by venture capital firm Thrive Capital; and additionally supported by a consortium of investors ranging from fellow AI darling Nvidia, SoftBank, and Fidelity, to Altimeter Capital, Tiger Global, and longtime backer Microsoft (the latter having sunken at least US$13 billion or AU$18.9 billion into it since 2019).
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Effectively, the artificial intelligence trailblazers of ChatGPT fame have earned a staggering valuation of US$157 billion (AU$228.8 billion) since the US$80 billion (AU$116.6 billion) benchmark they reached back in February; and more than quadrupled since last year’s US$29 billion (AU$42.3 billion) appraisal.
“We are making progress on our mission to ensure that artificial general intelligence benefits all of humanity,” OpenAI noted in a statement announcing the raise.
“Every week, over 250 million people around the world use ChatGPT to enhance their work, creativity, and learning. Across industries, businesses are improving productivity and operations, and developers are leveraging our platform to create a new generation of applications. And we’re only getting started.”
Currently, the countdown is on for OpenAI to ditch its non-profit structure to become a for-profit firm.
Aside from the fact that founding CEO Sam Altman stands to gain a 7% stake in the company (potentially 11% with the new valuation) once the transition actually happens, funding round investors reserve the right to withdraw their capital if said transition fails to complete.
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According to CNBC, this year, OpenAI is projecting a US$5 billion (AU$7.3 billion) net loss against US$3.7 billion (AU$5.4 billion) in revenue; with an ambitious US$11.6 billion (AU$16.9 billion) revenue target currently set for 2025.
Though given ChatGPT has practically become synonymous with the current AI boom, and the widespread adoption of OpenAI’s tech which now includes the iPhone 16, it might not be such a long shot.
