How OpenAI Became a $157 Billion Powerhouse After Major Funding

10 月 7 日

SAN FRANCISCO, United States – OpenAI, the maker of ChatGPT, has secured $6.6 billion in funding, along with a $4 billion credit line, boosting its valuation to $157 billion.

Significant Investors

The funding, led by CEO Sam Altman and CFO Sarah Friar, has alarmed competitors like Google and Meta. Microsoft, after a previous $13 billion investment, has once again backed OpenAI, alongside new investors such as SoftBank and Nvidia.

High Operational Costs

OpenAI faces enormous operational costs in developing generative AI. The company projects a $5 billion loss this year on $3.7 billion in revenue, expecting to reach $11.6 billion in 2025. CFO Friar emphasized the importance of computing power and talent in driving costs.

Governance Changes

Founded in 2015 by Elon Musk and others to counter Google’s dominance in AI, OpenAI began as a non-profit. Altman later shifted it to a “capped profit” model, but the governance structure has faced challenges. Last November, Altman was briefly ousted, leading to employee unrest and his quick reinstatement.

Looking Ahead

With new investors pushing for a traditional profit model, CFO Friar noted, “We want to be a more traditional company.” Investors are also considering equity for Altman, which could make him a multi-billionaire.