OpenAI, the creator of ChatGPT, has raised $6.6 billion from investors, potentially valuing the company at $157 billion and solidifying its status as one of the world’s most valuable private firms.
This funding round includes returning venture capitalists like Thrive Capital and Khosla Ventures, as well as OpenAI’s main corporate supporter, Microsoft, and new participation from Nvidia. Thrive Capital contributed about $1.2 billion through its fund and a special vehicle for smaller investors, with an option to invest an additional $1 billion next year if OpenAI meets certain revenue targets.
Apple was in talks to invest in OpenAI but ultimately chose not to participate. The funding is structured as convertible notes, with equity conversion dependent on a successful transition to a for-profit model that would shift control from its non-profit board and remove any cap on investor returns.
Investors have secured protections during OpenAI’s restructuring, which will grant Altman equity. These discussions are ongoing, with no set timeline for completion. Terms allow investors to recover their capital or renegotiate the valuation if changes are not made within two years.
OpenAI’s rapid growth in product popularity and valuation has drawn attention. Since launching ChatGPT, it has attracted 250 million weekly active users, with its valuation rising from $14 billion in 2021 to $157 billion, and revenue increasing from zero to $3.6 billion—far exceeding Altman’s earlier projections.
