OpenAI raised $6.6B led by Thrive Capital, the largest VC deal of all time, valuing it at $157B, with participation from Microsoft, Nvidia, SoftBank, and others

- Not taking part, a source confirms, is Apple, which reportedly had been in talks to invest.

Axios 2024-10-03 Ina Fried

Discussion

@alexkantrowitz Alex Kantrowitz on threads
OpenAI has raised $6.6 billion at a $157 billion valuation, the largest VR funding round ever. For context, Gap Inc is worth $7 billion, Ford is worth $41 billion, and Airbnb is worth $79 billion. https://www.axios.com/...
@glinden.bsky.social Greg Linden on bluesky
At least for Microsoft and NVidia, investment probably comes right back to them as revenue from cloud and chip sales. But I'm not sure that the other investors will see any returns from this even though it gives OpenAI desperately needed additional time to find viable products a…
@danprimack Dan Primack on x
OpenAI's next step: Consider going public via IPO https://www.axios.com/...
@garymarcus Gary Marcus on x
👇OpenAI was founded in 2015, but for the purposes of this chart they treat 2022 as “Year 0”.
@edzitron Ed Zitron on x
Could it be that generative ai just doesn't make that much money? That there isn't that much interest in the products you can build with it? https://www.wheresyoured.at/ ... [image]
@garymarcus Gary Marcus on x
Remember how I said that if the OpenAI deal went through we could expect some unusual investor protections? Here's one:
@jason @jason on x
Interesting chart of openAI revenues in first four years ( from @altcap ) vs ~25 years ago for Google and ~20 years ago for Facebook Is this inflation adjusted or actual dollars brad? [image]
@modestproposal1 @modestproposal1 on x
OpenAI is going to pay 9% interest on the $6 - $6.5B raise? Assume it's PIK, cause paying out $650M of a $6.5B raise when you're burning $5B/year doesn't make a lot of sense. [image]
@edzitron Ed Zitron on x
Newsletter: OpenAI is a bad, unprofitable business, with most of its revenue coming from premium subscriptions, and only 27% ($1bn) coming from people licensing its technology, suggesting that the generative AI industry is much smaller than we thought. https://www.wheresyoured.at…
@elonmusk Elon Musk on x
@SERobinsonJr ... It's my building. That's where we created OpenAI (as an open source, non-profit!!) and Neuralink.
@danprimack Dan Primack on x
VC who didn't participate in OpenAI round: “We have some stock in Nvidia, and that's who's going to get all of this money anyway.”
@kateclarktweets Kate Clark on x
OpenAI employees will now have the opportunity to sell their shares through a tender offer, @erinkwoo reports: https://www.theinformation.com/ ...
@alice_comfy @alice_comfy on x
OpenAI is almost like Moviepass, in the sense of having substantial growth but a dire financial situation. If it was 2023 with the practical monopoly on frontier level models, MS bailout would make sense, now not so much. Trying to keep OAI going is as costly as DIY.
@coryweinberg Cory Weinberg on x
OpenAI's fundraising haul is closing this week, arming the chaotic startup with enough cash to extend its lead. A credible CFO amid staff turnover and huge losses seems essential. Newsy profile of Sarah Friar, who “gives investors a lot of comfort”: https://www.theinformation.com…
@stephenfleming Stephen Fleming on x
I don't know what this is, but it isn't “venture capital.”
@azeem Azeem Azhar on x
Some people argued this company was failing.
@peter_atwater Peter Atwater on x
There's a sentiment indicator in here somewhere...
@scobleizer Robert Scoble on x
OpenAI gasses up.
@andrewcurran_ Andrew Curran on x
Open AI has officially closed its funding round. $6.6B in new funding at a new valuation of $157B. Just nine months ago it was $70B. In that same time period OpenAI total employees went from 700 to 1700. Also, SoftBank finally made it in, they were turned down last time. [image]
@amitisinvesting Amit on x
FOR SOME CONTEXT: Elon Musk's xAI raised $6B at a $24B valuation, selling 25% of the company for the $6B. OpenAI just raised $6.5B at a $157B valuation, selling only 4% of the company for about the same amount of funding. The amount of capital being poured into AI is incredible…
@jason @jason on x
Predict OpenAI will be worth $300B in seven years — which means investors will 2x their money (if current reports of $157B are correct); will go into the bank of the envelope math on @twistartups today with @alex
r/OpenAI r on reddit
OpenAI closes funding at $157 billion valuation, as Microsoft, Nvidia, SoftBank join round
r/mlscaling r on reddit
OpenAI raised $6.6B in new funding at a $157B post-money valuation
r/singularity r on reddit
OpenAI: New funding to scale the benefits of AI
@haydenfield Hayden Field on x
NEW: OpenAI now has a $4B revolving line of credit, bringing its total liquidity to more than $10B. Based on current rates, OpenAI will be paying roughly 6% on money that it borrows right away. Participating banks: JPMorgan Chase, Citi, GS, MS & more. https://www.cnbc.com/...
@togelius Julian Togelius on x
Please just IPO already. I find it easier to deal with an openly profit-maximizing company than this sanctimonious bullshit.
@tonytassell Tony Tassell on x
If you want to understand the business dynamics of OpenAI and how difficult it will be to justify its $150bn valuation, then this column by @RichardWaters is a good place to start https://www.ft.com/...
r/artificial r on reddit
One-Minute Daily AI News 10/2/2024

Chronicles

OpenAI raised $6.6B led by Thrive Capital, the largest VC deal of all time, valuing it at $157B, with participation from Microsoft, Nvidia, SoftBank, and others

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