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SAN FRANCISCO — A group of investors are giving $6.6 billion to OpenAI to help the generative AI pioneer "scale the benefits of AI."
The round gives OpenAI a post-money valuation of $157 billion, according to the company today. In comparison, the valuation exceeds the current market cap of various established public companies, such as Siemens, Goldman Sachs and Lowe's.
OpenAI plans to use the billions to “double down” on its frontier AI research, increase compute capacity and build tools that "help people solve hard problems."
The round reportedly includes $1.3 billion from the venture capital firm Thrive Capital, $750 million from Microsoft and investments by the AI hardware and software maker NVIDIA as well as Fidelity Management and Research Co. and Khosla Ventures, according to Bloomberg.
Tokyo-based SoftBank Vision Fund, part of the conglomerate SoftBank Group, reportedly planned to be part of the round, according to The Information.
Microsoft previously invested $13 billion in OpenAI.
OpenAI reportedly expects to lose about $5 billion this year, according to The New York Times.
The company’s losses come as OpenAI expects to generate $3.7 billion in annual revenue, according to CNBC.
OpenAI expects to more than 3x its revenue next year and generate $11.6 billion in revenue, CNBC reports.
Over 250 million people use ChatGPT each week, the company reports, saying it is "only getting started." In September, the company released its latest model, the o1 "reasoning" model.
“We aim to make advanced intelligence a widely accessible resource," OpenAI says.
“By collaborating with key partners, including the U.S. and allied governments, we can unlock this technology's full potential.”
See more: Is OpenAI’s New o1 Model the Big Step Forward We’ve Been Waiting For?
