Openai announced on Monday that it had finalized a $40 billion funding agreement, doubling the valuation of the company from six months ago.
Led by SoftBank, the new funding round valued Openai at $300 billion and positioned it as one of the most valuable private companies alongside Rocket Company SpaceX and bytedance, the parent company of Tiktok.
The investment round follows the launch of the AI chatbot ChatGpt in late 2022, demonstrating the continued excitement in the high-tech industry for AI advancements.
Openai CEO Sam Altman expressed that the investment will drive innovations and make AI more beneficial in everyday life.
Openai also revealed that 500 million people are actively using ChatGpt weekly, with 20 million paying for the advanced version of the chatbot.
According to sources, the $40 billion investment will be split into two parts, with Softbank Group contributing 75% of the total amount.
Altman founded Openai as a nonprofit in 2015 with Elon Musk, transitioning it to a commercial enterprise in 2018 to attract the necessary funding for AI development.
Plans are in motion to shift the management of the company to a for-profit entity known as public benefit companies.
Musk filed a lawsuit against Openai and Altman, accusing them of prioritizing commercial interests over public good.
Openai aims to transition to public benefit companies by the end of the year, or risk a reduction in SoftBank’s contribution.
A bid from Musk and investors to acquire assets from Openai was rejected by the board of directors.
Altman’s efforts to separate the company from the nonprofit may face challenges due to the ongoing legal issues.
(Openai and Microsoft are facing a lawsuit alleging copyright infringement related to AI news content, which they have denied.)
Source: www.nytimes.com
