OpenAI Secures $6.6 Billion to Develop Advanced AI Models

OpenAI has successfully secured $6.6 billion in funding, achieving a valuation of $157 billion to advance its mission of creating artificial general intelligence. This round, led by Thrive Capital with a $1 billion investment, includes a unique provision allowing Thrive to invest an additional $1 billion next year at the same valuation if OpenAI meets specific revenue targets.

This funding is contingent upon OpenAI restructuring into a for-profit entity. Currently, its for-profit arm is managed by a nonprofit research organization, with investor returns capped at 100 times their investment. Should OpenAI fail to transition to a for-profit model within two years, investors have the option to withdraw their funds. Reports indicate the company is considering becoming a public benefit corporation, similar to Anthropic.

In a notable strategy, OpenAI has requested its investors not to support rival startups, including Anthropic and Elon Musk’s xAI. This latest funding round slightly exceeds xAI's $6 billion raised in May. OpenAI is now valued at approximately 40 times its reported revenue, underscoring the significant excitement surrounding AI in Silicon Valley. Recent figures indicate that OpenAI's monthly revenue reached $300 million in August, with projections for annual revenues of about $3.7 billion this year and $11.6 billion next year.

These substantial funds will facilitate the costly development of advanced AI models. Dario Amodei, CEO of Anthropic, has mentioned that training AI models is becoming increasingly expensive, with projected costs of $1 billion for some models and potential $100 billion models in the future. OpenAI's objective to create a series of sophisticated reasoning models makes securing ongoing funding vital for its progress.