OpenAI: The Startup that Secured $6.6bn in Funding
In the wake of rapid technological advancements, AI has emerged as a transformative force across global industries from healthcare to finance, manufacturing to retail.
Businesses are increasingly recognising AI as a tool to revolutionise operations, enhance decision-making and drive innovation, as well realising its potential.
Yet whilst AI technologies mature and investors take note, pouring significant capital into the sector, a startup has emerged onto the market.
OpenAI, a frontrunner in AI research and development, has secured US$6.6bn in funding.
This investment catapults the company's valuation to US$157bn, placing it among the world's most valuable private entities.
The funding round, which attracted both new and existing investors, including tech giants and venture capital firms, only underscores the growing confidence in AI's potential to boom the business landscape.
AI funding and corporate interest
OpenAI is an AI research company that was founded in 2015 to develop safe AI, which can perform any intellectual task, designed with safeguards to ensure it remains beneficial and controllable.
It also creates advanced AI systems like ChatGPT and DALL-E, focusing on generative AI (Gen AI) and machine learning.
Initially a non-profit, the company transitioned to a capped-profit model in 2019 to attract investment and talent.
Now, its recent breakthroughs in language models and image generation have propelled it to global prominence.
OpenAI's latest funding round has attracted significant interest from major players in the technology sector.
Nvidia, for example, a company known for producing graphics processing units (GPUs) essential for AI computations, entered as a new investor.
Microsoft, a long-time backer of OpenAI, also played a substantial role in this funding round.
It is no surprise that businesses are currently investing billions into AI technologies, with many companies now listing AI as their top priority to keep competitive advantage.
The report by Reuters, also mentions that Sarah Friar, OpenAI's Chief Financial Officer, informed employees about a forthcoming opportunity for them to sell their shares in the company through a tender offer.
AI’s growth and challenges
The report states that ChatGPT, OpenAI's conversational AI platform, now boasts over 200 million weekly active users, doubling its user base in just one year.
The company has also made substantial inroads into the corporate sector, through strategic partnerships and enterprise-focused offerings.
The report says that 92% of Fortune 500 companies are now using OpenAI's technologies, demonstrating the widespread adoption of AI in large corporations.
OpenAI's collaboration with PwC, a global professional services firm, also is highlighted as a significant partnership in the report.
PwC has become both the largest user and the first official reseller of ChatGPT Enterprise, OpenAI's business-focused AI solution.
Over 100,000 PwC employees in the US and UK will have access to this advanced AI tool, potentially transforming traditional business processes.
The report also says that, as OpenAI continues to innovate, introducing new features such as GPT-4o mini, a more efficient version of its flagship AI model, and SearchGPT, an AI-powered search feature.
These developments indicate OpenAI's ambition to expand its capabilities and maintain its competitive edge in the rapidly evolving AI landscape.
The report concludes: "Thrive Capital, which committed about US$1.2bn from a combination of its own fund and a special purpose vehicle for smaller investors, negotiated the option to invest another US$1bn next year, contingent on OpenAI meeting a specific revenue goal."
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