Thrive Capital is investing over $1 billion in OpenAI's current $6.5 billion fundraising round, with the opportunity to invest an additional $1 billion next year if the AI firm meets a revenue goal. This investment could elevate OpenAI's valuation to $150 billion, solidifying its position as one of the most valuable private companies globally.
OpenAI anticipates a significant revenue increase, projecting earnings to rise from an estimated $3.7 billion in 2024 to $11.6 billion next year. However, the company is also facing potential losses of up to $5 billion this year, largely due to its spending on computing power. The current funding round is expected to close soon, with Thrive Capital leading alongside other notable investors, including Microsoft, Apple, and Nvidia.
The valuation hinges on a complex restructuring to alter the control of its non-profit board and remove caps on investment returns. OpenAI's revenue expectations have dramatically exceeded earlier projections, with its flagship product, ChatGPT, expected to generate $2.7 billion in revenue this year, up from $700 million in 2023. This surge is attributed to substantial corporate sales and subscription growth, with ChatGPT boasting around 10 million paying users.
Reporting by Krystal Hu and Kenrick Cai; Source: Reuters, September 28, 2024.