• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

OpenAI closes funding at $157 billion valuation as Microsoft, Nvidia, SoftBank join round

by October 3, 2024
written by October 3, 2024

OpenAI has closed its long-awaited funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and big tech companies.

While OpenAI didn’t name the investors in Wednesday’s press release, a person with knowledge of the matter said the round was led by Thrive Capital and included participation from existing backer Microsoft as well as chipmaker Nvidia, SoftBank and others. Thrive planned to invest $1 billion in the round, CNBC previously reported.

OpenAI’s rapid ascent, which began with the launch of ChatGPT in late 2022, has been the biggest story in the tech industry over the last couple years, bringing the concept of generative artificial intelligence into the mainstream and paving the way for tens of billions of dollars of investments in AI infrastructure.

“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,” OpenAI wrote in a blog post Wednesday.

OpenAI generated $300 million in revenue last month, up 1,700% since the beginning of last year, CNBC confirmed last week, following reporting by The New York Times. The company expects to bring in $11.6 billion in sales next year, up from $3.7 billion in 2024, according to a person close to OpenAI who asked not to be named because the financials are confidential.

But all that revenue is extremely costly, as OpenAI has to ramp up purchases of Nvidia’s graphics processing units (GPUs) to train and run its large language models. The company expects to lose about $5 billion this year, the person said. Microsoft has invested billions of dollars in OpenAI and is a key partner as the software giant bolsters its Azure cloud business.

Earlier this year, OpenAI was valued at a reported $80 billion, up from $29 billion in 2023. Following the viral growth of ChatGPT, momentum has continued with new products for businesses and an expansion into AI-generated photos and videos.

OpenAI now has 250 million weekly active users on ChatGPT, CFO Sarah Friar told CNBC in a statement. There are also 11 million ChatGPT Plus subscribers and 1 million paying business users on ChatGPT, a person close to the company said.

“AI is already personalizing learning, accelerating healthcare breakthroughs, and driving productivity,” Friar said in the statement. “And this is just the start.”

OpenAI is experiencing plenty of growing pains along the way, including the loss of key executives, a trend that continued through last week.

Last Wednesday, OpenAI Chief Technology Officer Mira Murati, who briefly served as interim CEO, said she would be leaving after 6½ years. Shortly after that, research chief Bob McGrew and Barret Zoph, a research vice president, said they were leaving the company.

In an interview the next day at Italian Tech Week, OpenAI CEO Sam Altman said, “I think this will be hopefully a great transition for everyone involved and I hope OpenAI will be stronger for it, as we are for all of our transitions.”

Also on Thursday, OpenAI held an all-hands meeting, following the board’s decision to consider restructuring the company to a for-profit business, according to a separate person with knowledge of the matter. Altman said the departures were not related to the potential restructuring, contrary to some media reports.

Should the change occur, the nonprofit segment would remain as a separate entity, the source said.

At Thursday’s meeting, Altman denied reports of plans for him to receive a “giant equity stake” in the company, calling that information “just not true,” according to a person who was in attendance.

OpenAI Chairman Bret Taylor told CNBC in a statement last week that while the board has talked about the matter, no specific figures are on the table.

“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 no specific figures have been discussed nor have any decisions been made,” Taylor said.

The latest funding round also included participation from Khosla Ventures, Altimeter Capital, Fidelity, MGX and Tiger Global, sources told CNBC.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
MORNING GLORY: The VP debate is an example of Kamala Harris’s horrible judgment when it comes to picking staff
next post
Here’s the speech Biden should have given to a troubled United Nations

related articles

Customers sue sneaker company On over shoes that...

October 20, 2025

Giorgio Armani group names longtime executive Giuseppe Marsocci...

October 17, 2025

LendingTree founder and CEO Doug Lebda dies in...

October 15, 2025

UPS is ‘disposing of’ U.S.-bound packages over customs...

October 13, 2025

China outlines more controls on exports of rare...

October 10, 2025

Paramount acquires Bari Weiss’ The Free Press, naming...

October 7, 2025

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Russian government says it is willing to improve ties — but onus is on Trump to make first move

    December 28, 2024
  • One year after 10/7, Iran is losing the war. Now, Israel must secure peace

    October 7, 2024
  • Biden aides considered ‘undemocratic’ actions to keep cognitive decline hidden, Trump out of power: author

    May 27, 2025
  • SpaceX launch scrubbed hours after Hegseth shares message to rescue mission crew: ‘Wish you Godspeed’

    March 13, 2025
  • Trump flexes power over big business as U.S. takes 10% stake in Intel

    August 25, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,506)
  • Investing (634)
  • Stock (941)

Latest Posts

  • Top trade association sends letters calling on big changes in 3 key departments: ‘Unleash American energy’

    January 23, 2025
  • Top 5 moments from Night 2 at the Republican National Convention

    July 17, 2024
  • Speaker Johnson moves on Senate’s Trump budget bill as House GOP rebels threaten to defect

    April 5, 2025

Recent Posts

  • Israel strikes Hezbollah targets inside Lebanon; IDF warns residents to stay near bomb shelters

    September 20, 2024
  • Development of nuclear bomb 24 times more powerful than Hiroshima’s is ‘significantly ahead of schedule’

    April 9, 2025
  • Trump-appointed federal judge rules against Biden-era sex-based employment discrimination guidance

    May 16, 2025

Editor’s Pick

  • Israel begins ground operation in Hamas stronghold of Rafah, expands activities in Gaza

    March 20, 2025
  • Deadly drone wars are already here and the US is horribly unprepared

    June 7, 2025
  • Israel strike in Lebanon reportedly kills 4 Hezbollah operatives as region braces for possible Iran attack

    August 6, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock