OpenAI has secured $6.6bn (£5bn) in funding, valuing the AI business at $157bn. Investors include Nvidia and SoftBank.
The San Francisco startup behind ChatGPT did not disclose details about its reported shift to a for-profit model. Thrive Capital led the funding round, with other investors like MGX.
OpenAI’s post-funding valuation is comparable to Uber’s but trails Microsoft’s $3 trillion level. Other investors include Nvidia and SoftBank, with Arm as a notable investment.
Sarah Friar, CFO of OpenAI, emphasized ChatGPT’s popularity among 250 million weekly active users.
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“Over 250 million people use ChatGPT weekly for various challenges, from language communication to research problem-solving. AI is enhancing learning, accelerating medical advancements, and boosting productivity,” Friar stated.
OpenAI, expected to incur a $5 billion loss this year, plans to leverage the funding for AI research and reducing computing costs, a major expense in its development.
There’s no update on the restructuring. OpenAI may abandon its nonprofit status for a for-profit setup, overseen by a nonprofit board but with a for-profit subsidiary. Reports suggest CEO Sam Altman might have a stake in the revamped company.
Former employee William Saunders expressed concerns that the restructuring could compromise safety in AI startups.
OpenAI charter focuses on creating artificial general intelligence for the betterment of humanity.
Source: www.theguardian.com
