Sam Altman’s Open AI company raises $6.6 billion in funding, highest in 17 years in US
Photo: Times Now
OpenAI has made a big decision to move its funding from non-profit sources to profitable sources, and this shift has led to them raising $6.6 billion in venture capital funding, AP reported citing sources. This funding round was led by Thrive Capital, a venture capital firm along with other technology giants such as Nvidia, microsoft and Soft Banks were among the big names in the technology world. Although the amounts invested by these financiers have not been revealed.
Last year, Microsoft made a $10 billion investment in exchange for a significant stake in OpenAI’s future growth. On Wednesday, Microsoft said in a brief statement that it is positive about its future partnership with OpenAI and is looking forward to it.
According to OpenAI, this investment will allow them to “double our leadership in cutting-edge AI research.” Not only this, but it is also anticipated that this investment will help them increase “computing capacity” and financially support them in creating tools that will solve the company’s “hard problems.” This investment has increased OpenAI’s market value to $157 billion.
This change in investment source preferences for OpenAI comes from its move from a nonprofit research institute to a profitable corporation.
OpenAI, headquartered in San Francisco, is controlled by a non-profit board of directors, whose goal is to help humanity with advanced technological inventions. However, this is limiting its ability to generate more profits and offer better returns to its investors.
In light of competitor Elon Musk’s new AI company, xAIraising $6 billion in investments, PitchBook analyst Brendan Burke says this OpenAI partnership with Microsoft will help them stay on par with their rivals in the growing AI market.
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