This investment, led by Thrive Capital, marks the largest venture capital deal in history as the AI startup transitions to a for-profit model.
OpenAI attracted the significant financial backing as it pivots toward profitability. This funding round included major players like Nvidia, SoftBank, Fidelity Management, and long-time backer Microsoft.
With this new injection of funds, OpenAI’s valuation has skyrocketed to US$157 billion, a near doubling from previous estimates.
Despite these successes, OpenAI’s future hinges on its conversion to a for-profit structure, a stipulation important to investors. Should OpenAI fail to transition fully, investors reserve the right to withdraw their financial support, as noted by Axios.
Apple was in talks to join the funding round but ultimately did not, leaving the tech giant off the list of high-profile investors.
Meanwhile, OpenAI’s popular app ChatGPT continues to experience rapid growth, now boasting 250 million weekly active users and 11 million paying subscribers. The increased usage has prompted the company to consider raising subscription prices from US$22 per month by the end of 2024 to US$44 per month within five years.
