OpenAI has raised USD 6.6 billion in new funding, with a projected valuation of USD 157 billion. This has established OpenAI as one of the world’s most valuable private firms despite its ongoing management changes and organisational restructuring, including the unexpected departure of long-serving Chief Technology Officer Mira Murati last week.

The funding round was backed by companies like Microsoft, Nvidia, and Thrive Capital, as well as firms like Altimeter Capital, SoftBank, and Abu Dhabi’s MGX. The company anticipates increasing revenue to USD 11.6 billion in 2024, up from USD 3.6 billion this year.

The organisation is transitioning from a non-profit governed entity to a for-profit model, eliminating investor return caps as part of a major reorganisation effort.

The financing mainly consists of convertible notes, which will be converted to equity once the restructuring is finalised. Investors have agreed to terms that allow them to retrieve their capital or renegotiate the valuation if the changes are not implemented within two years.

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Sarah Friar, OpenAI’s CFO, has also informed employees about forthcoming liquidity options via a share buyback programme following this latest financing round. Some staff were permitted to sell their shares earlier this year when the company was valued at USD 86 billion.

Thrive Capital led the round with a USD 1.2 billion investment, with the option to inject an additional USD 1 billion next year if OpenAI achieves specific revenue targets. This fundraising comes on the heels of OpenAI’s soaring popularity, driven by the success of ChatGPT, which now boasts 250 million weekly active users. OpenAI’s valuation has increased from USD 14 billion in 2021 to USD 157 billion today.

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