OpenAI's Bold Funding Move Could Reshape AI Landscape

OpenAI is seeking a $6.5 billion funding round via convertible notes that could value the company at $150 billion, contingent on restructuring to remove its profit cap. The funding, which has attracted major investors including Microsoft, Thrive Capital, and Nvidia, aims to bolster its quest for artificial general intelligence.


Devdiscourse News Desk | Updated: 14-09-2024 06:47 IST | Created: 14-09-2024 06:47 IST
OpenAI's Bold Funding Move Could Reshape AI Landscape
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OpenAI's new financing round is expected to come in the form of convertible notes, according to sources with direct knowledge of the matter. The $150 billion valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.

The outsized funding round has seen strong investor demand and could be finalized in the next two weeks, given the rapid growth of OpenAI's revenue. Existing investors such as Thrive Capital, Khosla Ventures, as well as Microsoft are expected to participate. New investors including Nvidia and Apple also plan to invest, while Sequoia Capital is in talks to return.

The removal of the profit cap would require approval from OpenAI's non-profit board and may involve turning its non-profit structure into a for-profit benefit corporation. This change could raise questions about OpenAI's governance and commitment to its original non-profit mission.

(With inputs from agencies.)

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