OpenAI, the parent company of revolutionary ChatGPT, has raised a gigantic $6.6 billion investment from major investors, amongst them major investors include Microsoft and Nvidia. This funding round has pushed the valuation of Open AI up to an impressive $157 billion. which made it among one of the most valuable private companies in the world.
This financing round brought in new investors like most notably, Nvidia into the already invested investors, such as Microsoft, Khosla Ventures, and Thrive Capital. Other contributors include Altimeter Capital, Fidelity, SoftBank, and MGX, Abu Dhabi's state-backed investment firm. Thrive Capital committed $1.2 billion to the investment with an opportunity to add another $1 billion next year if OpenAI achieves certain revenue milestones. OpenAI expects its revenue to soar from $3.6 billion this year to an estimated $11.6 billion in 2025, despite projecting losses of more than $5 billion in 2024. Investors have negotiated protections to safeguard their investments, allowing them to reclaim their capital if the company’s restructuring plans aren’t completed within two years.
With rapid rise of OpenAI's, ChatGPT which was launched in 2022 and has put generative AI in the spotlight and gained billions of dollars of investment in AI infrastructure. With over 250 million weekly active users on ChatGPT, OpenAI continues to develop new AI products for businesses, solidifying its dominance in the market.
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