OpenAI, the AI company behind tools like ChatGPT, has raised US$6.6 billion in a new funding round, with giants such as Nvidia and SoftBank as key investors.
The latest investment brings OpenAI’s valuation to $157 billion, nearly doubling from $86 billion in January this year.
The capital injection comes from investors including Microsoft, SoftBank, and Nvidia, who are betting on OpenAI to lead in the growing AI sector.
Microsoft remains the largest cumulative investor in the company, having ploughed more than $13 billion.
A report from CNBC suggested this week that over 250 million people use OpenAI’s products weekly, with over 11 million subscribed to the paid ChatGPT Plus plan.
The newly raised capital will be used to strengthen OpenAI’s AI research, focusing on improving large language models and scaling its computing power.
Despite the ongoing investment success, OpenAI has yet to tur a profit and is set to lose around $5 billion this year, with its high expenses related to developing and maintaining its infrastructure.
However, with this significant financial boost, OpenAI plans to push further ahead in AI innovation. The company is not only focused on software but may also venture into hardware. Rumours are swirling that OpenAI is potentially designing its own machine learning chips.
While rival companies like Anthropic are also seeking fresh investments, OpenAI’s increased valuation places it firmly at the forefront of the sector.
“This credit facility further strengthens our balance sheet and provides flexibility to seize future growth opportunities,” said Sarah Friar, CFO of OpenAI in a statement. “We are proud to have the strongest banks and investors in the world supporting us.”
Source: https://totaltele.com/open-ai-raises-6-6-billion-in-latest-funding-round/