/cdn.vox-cdn.com/uploads/chorus_asset/file/25431700/STK201_SAM_ALTMAN_CVIRGINIA_A.jpg "OpenAI just raised $6.6 billion to build ever-larger AI models")
OpenAI just raised $6.6 billion to build ever-larger AI models
By Kylie Robison , a senior AI reporter working with The Verge's policy and tech teams. She previously worked at Fortune Magazine and Business Insider.
OpenAI just closed a historic funding round, taking in a $6.6 billion investment at a $157 billion valuation, to continue pursuing its mission to build artificial-general intelligence according to a company blog post.
The funding round was led by Thrive Capital, which committed $1 billion, according to the Financial Times. It was also reported that Thrive got a special deal (not offered to other investors) that allows it to invest another $1 billion next year at the same valuation if the AI firm hits a revenue goal, Reuters reported.
These funds are apparently contingent on OpenAI going through with a rumored restructure as a for-profit company. The company’s for-profit wing is currently overseen by a nonprofit research body, and investor profits are capped at 100x. If OpenAI doesn’t restructure itself as a for-profit company within two years, Axios reported, investors can ask for their money back. Last week, Reuters reported that the company is considering becoming a public benefit corporation (like Anthropic).
In a rare move, OpenAI also asked investors to avoid backing rival start-ups such as Anthropic and Elon Musk’s xAI, the Financial Times reported. It’s worth noting that OpenAI’s latest funding round just barely surpasses xAI, which raised $6 billion in May.
