OpenAI, parent firm of ChatGPT, closes $122bn funding round amid AI boom
TL;DR
OpenAI has closed a $122 billion funding round, achieving a valuation of $852 billion.
Key Points
- Amazon, Nvidia, and SoftBank are among the lead investors – SoftBank alone reportedly committed $110 billion, according to the Wall Street Journal.
- A select group of individual investors was also allowed to contribute around $3 billion.
- OpenAI says it generates $2 billion in monthly revenue, making it one of the most highly valued private companies in the world.
Nauti's Take
852 billion dollars for a company that has yet to turn a profit – that is either the greatest vote of confidence in a technology since the iPhone or the most expensive bet in financial history. SoftBank as lead investor echoes the WeWork era, but this time the fundamentals look sturdier: $2 billion in monthly revenue is not a vanity metric.
Notably absent from the headlines: Microsoft, OpenAI's closest partner, does not feature prominently among the new investors – which could signal a quiet strategic shift. One thing is certain: at this valuation, the margin for error is essentially zero.
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