Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
  • AI
  • Tech
  • Cybersecurity
  • Finance
  • DeFi & Blockchain
  • Startups
  • Gaming
Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
Dataconomy
No Result
View All Result

OpenAI’s funding round lifts valuation to $157 billion

The company's shift to becoming fully for-profit is a response to market demand and a crucial move in securing additional investment

byKerem Gülen
October 3, 2024
in Artificial Intelligence

According to The Wall Street Journal, OpenAI has recently secured $6.6 billion with a new funding round which significantly increased the company’s valuation to $157 billion. This sharp increase nearly doubles its previous valuation of $86 billion. The deal, however, includes a provision allowing investors to retract funds if OpenAI doesn’t finalize its transition to a fully for-profit entity, moving away from its nonprofit roots.

Key investors backing OpenAI’s growth

Thrive Capital led the investment with $1.25 billion, while Microsoft, a long-time supporter of OpenAI, added just under $1 billion. Other major participants included SoftBank, which contributed a $500 million stake, and Nvidia, which contributed $100 million. The UAE-based firm MGX also joined in, furthering its involvement in the AI world after partnering with Microsoft in an infrastructure initiative last month.

Apple, which had explored investing but ultimately opted out, was absent from the list of investors. The minimum investment required to access OpenAI’s financial records was $250 million, as reported by The Wall Street Journal. OpenAI’s first CFO, Sarah Friar, was pivotal in orchestrating this funding round since joining the company in June.

Stay Ahead of the Curve!

Don't miss out on the latest insights, trends, and analysis in the world of data, technology, and startups. Subscribe to our newsletter and get exclusive content delivered straight to your inbox.

OpenAI’s funding round lifts valuation to $157 billion
OpenAI has recently secured $6.6 billion with a new funding round which significantly increased the company’s valuation to $157 billion (Image credit)

OpenAI’s valuation now rivals major public companies like Goldman Sachs and Uber. The company faces stiff competition from the likes of Anthropic, Meta, and Google, all racing to develop advanced AI systems. Nevertheless, OpenAI has maintained significant momentum, with ChatGPT amassing around 250 million weekly active users, according to The Wall Street Journal’s sources, and securing 11 million paying subscribers. Furthermore, nearly 1 million businesses now use OpenAI’s services.

Internal struggles emerge as OpenAI transitions to a for-profit model

The company’s rapid growth has fueled internal shifts, moving from research-driven goals toward a more commercial focus. The rise of ChatGPT is generating consumer and enterprise revenue. But this evolution has also raised internal conflicts: leadership changes, and doubts on whether the company is devolving from its mission of making AI available for the benefit of the public good.

The last two years have seen OpenAI shift from being primarily a research company to a highly enthusiastic business organization, especially with ChatGPT. The move towards consumer technology and enterprise services has led to internal friction, particularly surrounding the company’s evolving mission.

OpenAI’s funding round lifts valuation to $157 billion
The company’s shift to becoming fully for-profit is a response to market demand and a crucial move in securing additional investment (Image credit)

Last year, OpenAI faced a significant leadership crisis with its CEO’s firing and subsequent rehiring, as well as discontent from former employees who felt the company’s increasing focus on profitability compromised its original aim of advancing AI for the public good.


Who is Durk Kingma, Anthropic’s latest transfer from OpenAI?


The company’s shift to becoming fully for-profit is a response to market demand and a crucial move in securing additional investment. There is actually a lot more people willing to fund OpenAI to get to AGI, making the shift to a for profit model now pretty much crucial for the organization.

This shift is indeed understood against the background of the need to maximize the value of the AI market which is expected to expand exponentially while at the same time sparking controversies around the entrepreneurially sustainable way of innovating that embraces both the benefits of algorithmic governance and the responsibility in handling the consequences that come with it.


Featured image credit: Kerem Gülen/Midjourney

Tags: FeaturedopenAI

Related Posts

Microsoft Copilot can now create documents and search your Gmail

Microsoft Copilot can now create documents and search your Gmail

October 10, 2025
Google Messages is about to get a lot smarter with this AI tool

Google Messages is about to get a lot smarter with this AI tool

October 10, 2025
Microsoft’s answer to OpenAI’s data centers: An AI factory

Microsoft’s answer to OpenAI’s data centers: An AI factory

October 10, 2025
OpenAI says its new GPT-5 models are 30% less politically biased

OpenAI says its new GPT-5 models are 30% less politically biased

October 10, 2025
Mercedes shows off what it is like to truly talk to a car with Gemini

Mercedes shows off what it is like to truly talk to a car with Gemini

October 10, 2025
The Browser Company’s AI browser Dia is now open to all on macOS

The Browser Company’s AI browser Dia is now open to all on macOS

October 10, 2025

LATEST NEWS

Verizon down: Latest Verizon outage map for service issues

A critical Oracle zero-day flaw is being actively abused by hackers

Microsoft Copilot can now create documents and search your Gmail

Google Messages is about to get a lot smarter with this AI tool

Here is how WhatsApp will let you display your Facebook account

The Windows 10 doomsday clock is ticking for 500 million users

Dataconomy

COPYRIGHT © DATACONOMY MEDIA GMBH, ALL RIGHTS RESERVED.

  • About
  • Imprint
  • Contact
  • Legal & Privacy

Follow Us

  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
No Result
View All Result
Subscribe

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.