OpenAI Secures $6.6 Billion, Surpasses $157 Billion Valuation Amid Corporate Restructuring

OpenAI announced it has raised $6.6 billion, pushing its valuation to $157 billion. The funding round saw participation from major investors and coincides with significant corporate restructuring and executive changes. The company, on track to generate $3.6 billion in revenue this year, aims to transition to a for-profit model.

OpenAI has successfully raised $6.6 billion from investors, elevating its post-money valuation to an impressive $157 billion. This announcement cements the ChatGPT maker's reputation as one of the most valuable private companies globally. Significant backers in this funding round include Thrive Capital, Khosla Ventures, Microsoft, and newcomer Nvidia.

The influx of funds comes amid OpenAI's ongoing restructuring, highlighted by the sudden exit of Chief Technology Officer Mira Murati. Other notable participants in the funding include Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi's MGX investment firm.

The funding, in the form of convertible notes, is contingent on OpenAI's successful transition to a for-profit structure, removing investor return caps. Despite recent personnel changes, investor excitement remains high, fueled by projections of substantial growth from CEO Sam Altman and CFO Sarah Friar.

OpenAI is on track to generate $3.6 billion in revenue this year, despite incurring losses of over $5 billion. The company anticipates a revenue surge to $11.6 billion next year. Investors have negotiated protective clauses to reclaim capital or reevaluate the valuation should structural changes not materialize within two years.

The rise of OpenAI, driven by the popular ChatGPT with 250 million weekly users, has seen its valuation soar from $14 billion in 2021 to $157 billion. The company continues to pursue advancements in artificial general intelligence (AGI), balancing commercialization with its ambitious research goals.

(With inputs from agencies.)