Microsoft and Nvidia join in “huge” investment in OpenAI

The round attracted returning venture capitalists, including Thrive Capital and Khosla Ventures, as well as Microsoft, OpenAI’s largest investor, and participation from Nvidia. The closing of the round coincides with the company’s ongoing restructuring and staffing changes, including the abrupt departure of longtime CTO Mira Murati last week.

OpenAI successfully raised $6.6 billion from investors.

Altimeter Capital, Fidelity, SoftBank and Abu Dhabi's state-backed investment company MGX also participated in the round. Altimeter Capital, Fidelity, SoftBank and Abu Dhabi's state-backed investment company MGX also participated in the round.

OpenAI Chief Financial Officer Sarah Friar has told employees that the company may offer them liquidity through an offer to buy back their shares after the investment, though details and timing have not been decided. Earlier this year, the company allowed some employees to cash out their shares at a valuation of $86 billion.

Thrive Capital has committed to invest about $1.2 billion with an option to invest another $1 billion next year at the same valuation if OpenAI hits its revenue target.

According to unnamed sources, multinational technology corporation Apple, which was in talks to invest in OpenAI, did not participate in this investment round.

The investment of up to $6.6 billion is being made in the form of convertible bonds, and the conversion to equity is contingent on structural changes that will turn OpenAI into a for-profit company, where the nonprofit board will no longer control or limit returns to investors.

OpenAI's recent personnel changes haven't dampened the enthusiasm of most investors, who are predicting significant growth based on CEO Sam Altman's projections.

OpenAI is on track to generate $3.6 billion in revenue this year, despite a projected loss of more than $5 billion. The company behind the Chat software GPT is forecast to earn $11.6 billion next year, according to people familiar with the matter.

The investors have approved a number of capital safeguards, including a capital allocation to Altman while OpenAI undergoes a complex restructuring. Negotiations are ongoing and no specific timetable has been set. They also reached an agreement to allow the company to recoup its investment or renegotiate its valuation if changes are not made within two years.

OpenAI’s meteoric rise in product popularity and valuation has captured the world ’s attention. Since launching ChatGPT, the app has attracted more than 250 million weekly users. The company’s valuation has also increased from $14 billion in 2021 to $157 billion as revenue has grown from zero to $3.6 billion, far exceeding Altman’s own forecasts at the time.

The company has told investors that it is still actively pursuing artificial general intelligence (AGI), which means developing AI systems that outperform human intelligence, as it pushes toward commercialization and tries to achieve profitability.

Source: https://www.baogiaothong.vn/microsoft-va-nvidia-tham-gia-dau-tu-khung-vao-openai-cong-ty-dung-sau-chatgpt-192241003063913749.htm