OpenAI has completed a funding round, raising over $6.5 billion, which boosts its valuation to more than $150 billion. This makes OpenAI one of the top three private equity-backed startups globally, alongside SpaceX and ByteDance.
The investment round, led by Thrive Capital, underscores the tech sector's confidence in artificial intelligence and its appetite for funding costly research.
This significant funding comes after a tumultuous year for OpenAI, which saw the firing and quick reappointment of CEO Sam Altman, a reshaping of its board, and the hiring of hundreds of new employees.
Founded in 2015 as a nonprofit research organization, OpenAI transitioned to a capped-profit model in 2019 to support the high costs of AI development, attracting billions in investments from major companies like Microsoft.
Earlier this month, Bloomberg reported that OpenAI was in discussions to secure $6.5 billion from investors, with the new valuation significantly higher than its previous $86 billion from an earlier stock sale.
Sam Altman announced in an internal meeting that the company would undergo significant structural changes in the upcoming year.