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3w ago

OpenAI Secures $8.3 Billion Oversubscribed Round, Valuation Hits $300 Billion

The funding push brings OpenAI nearer to its $40 billion target by boosting its annual recurring revenue to $13 billion.

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OpenAI CEO Sam Altman is sitting pretty right now.
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OpenAI raises over $8 billion in latest funding round, reaching $300 billion valuation

Overview

  • OpenAI’s latest funding round raised $8.3 billion five months ahead of schedule, valuing the company at $300 billion and closing five times oversubscribed.
  • Dragoneer Investment Group led the tranche with a $2.8 billion commitment that represents about 10 percent of its total funds.
  • New institutional backers such as Blackstone, TPG and T. Rowe Price joined existing investors including Fidelity, Sequoia Capital, Andreessen Horowitz, Tiger Global and Thrive Capital.
  • Annual recurring revenue climbed from $10 billion in June to $13 billion, while paid ChatGPT business users rose from three million to five million.
  • OpenAI continues negotiations with Microsoft to finalize its shift from nonprofit governance to a fully for-profit structure ahead of a potential IPO.