OpenAI secures $8.3B in new funding, valuation climbs to $300B
What's the story
OpenAI, the creator of ChatGPT, has raised $8.3 billion in a new funding round that values the company at around $300 billion. The oversubscribed round came months ahead of schedule and is part of OpenAI's broader strategy to secure a total of $40 billion this year. The largest single investment in this funding round came from Dragoneer Investment Group, which committed $2.8 billion. OpenAI had initially raised $2.5 billion from VC firms in March.
Growth trajectory
OpenAI's rapid growth in annual recurring revenue
OpenAI's annual recurring revenue has jumped to $13 billion, up from $10 billion in June. The company expects this figure to exceed $20 billion by the end of this year. The number of businesses paying for ChatGPT has also grown rapidly, from three million to five million in just a few months. The company is now gearing up to launch GPT-5, it's most advanced AI model.
Investor interest
New investors join OpenAI's funding journey
The latest funding round for OpenAI has attracted a wide range of new investors. Major private equity firms like Blackstone and TPG, as well as mutual fund manager T. Rowe Price, were among those who participated. Other notable participants included Fidelity, Founders Fund, Sequoia Capital, Andreessen Horowitz, Coatue Management, Altimeter Capital, D1 Capital Partners, Tiger Global and Thrive Capital.