OpenAI: OpenAI’s $150 billion valuation hinges on a change in corporate structure

OpenAIChatGPT’s new funding round is expected to come in the form of convertible bonds, according to sources with direct knowledge of the matter, who said its $150 billion valuation will depend on whether the ChatGPT maker can reverse its Corporate structure and remove a profit cap for investors.

The details of the terms of the $6.5 billion funding, which have not been previously reported, show the extent to which OpenAI, the world’s most valuable AI startup, has evolved from a research-based nonprofit, and the structural changes it is willing to make to attract ever more investment to fund its expensive quest for artificial general intelligence (AGI).

The huge round of financing There has been strong demand from investors and it could materialize in the next two weeks given OpenAI’s rapid revenue growth, the sources added.

Existing investors Thrive Capital, Khosla Ventures and Microsoft are expected to participate. New investors, including Nvidia and Apple, are also planning to invest. Sequoia Capital is also in talks to return as a repeat investor.

If the restructuring is not successful, OpenAI would have to renegotiate its valuation with investors at which its shares will be converted, likely at a lower figure, sources told Reuters on condition of anonymity to discuss private matters.


OpenAI declined to comment.

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