OpenAI secures record-breaking $6.6 billion in funding, now valued at $157 billion

Why it matters: We knew OpenAI was hot, but maybe not this hot. The company has just raised a startling $6.6 billion, leading to a valuation of $157 billion. Even by Silicon Valley standards this is a lot of money. OpenAI is close-lipped about how it will invest the capital, only saying it will accelerate AI research and increase its compute capabilities.
In a landmark deal, OpenAI has raised $6.6 billion in new funding, sending its valuation soaring to an astounding $157 billion. This investment round is one of the largest ever in private markets and confirms OpenAI’s position as a frontrunner in the AI race.
Thrive Capital, led by Josh Kushner, spearheaded the funding round with a $1.3 billion investment. Microsoft, OpenAI’s primary backer, contributed an additional $750 million, a source told Bloomberg, bringing Redmond’s total investment to nearly $14 billion.
Other investors included Nvidia, Khosla Ventures, Fidelity Management & Research Co., Tiger Global Management, Altimeter Capital, Coatue Management and venture firm Quiet Capital.
The funding round also attracted global interest, with Japan’s SoftBank Group and Abu Dhabi-based MGX joining the roster of investors, people familiar with the matter told Bloomberg. SoftBank’s investment came to $500 million, according to one of the sources.
The funding has made OpenAI one of the three largest venture-backed startups, alongside Elon Musk’s SpaceX and TikTok owner ByteDance.
The money raised is a stunning amount, even by Silicon Valley standards.