OpenAI, the company responsible for ChatGPT, has raised $6.6 billion in funding, potentially valuing it at $157 billion, solidifying its position among the world's most valuable private firms.

The funding attracted several returning venture capital investors like Thrive Capital and Khosla Ventures, alongside OpenAI’s major corporate backer Microsoft (NASDAQ). New investors include Nvidia (NASDAQ) and Abu Dhabi's MGX. Notably, Mira Murati, the company’s longtime Chief Technology Officer, recently departed amid these developments.

Altimeter Capital, Fidelity, and SoftBank (TYO:9984) also participated in the funding round. OpenAI’s Chief Financial Officer, Sarah Friar, informed employees that the company will offer them liquidity through a tender offer, allowing them to sell their shares, though details are yet to be finalized. Earlier this year, some employees cashed out at a valuation of $86 billion.

Thrive Capital committed $1.2 billion, including a special purpose vehicle for smaller investors, with an option to invest another $1 billion next year if OpenAI meets specific revenue goals. Apple (NASDAQ) had been in talks to invest but ultimately did not participate.

The funding was structured as convertible notes, with equity conversion contingent on restructuring OpenAI from its current non-profit model to a for-profit entity without capped investor returns. While investors remain optimistic, there are protections in place allowing them to recover their capital or renegotiate the valuation if the changes aren’t enacted within two years.

OpenAI’s rapid ascent has captured global attention, especially following the launch of ChatGPT, which has reached 250 million weekly active users. The company's valuation has surged from $14 billion in 2021 to $157 billion, with projected revenues this year hitting $3.6 billion, although losses are expected to exceed $5 billion. OpenAI forecasts a significant revenue increase to $11.6 billion in 2025, driven by CEO Sam Altman's vision of further growth.

The company remains focused on advancing artificial general intelligence (AGI), striving to develop systems that surpass human intelligence while scaling its commercialization efforts toward profitability.

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