OpenAI, the leading AI startup renowned for its ChatGPT technology, is gearing up for a significant $6.5 billion funding round, with the terms expected to include convertible notes. This new financing is set against a backdrop of ambitious structural changes, as the company aims to secure a valuation of $150 billion—a figure dependent on its ability to overhaul its corporate structure and lift the existing profit cap for investors.
The intricate details of this financing round, previously undisclosed, reveal the extent of OpenAI’s evolution from a research-based non-profit to the world’s most valuable AI startup. The proposed changes underscore the company’s drive to attract substantial investment necessary for its pursuit of artificial general intelligence (AGI)—AI systems that surpass human cognitive abilities.
Sources familiar with the matter, who spoke on condition of anonymity, indicated that existing investors such as Thrive Capital, Khosla Ventures, and Microsoft are expected to participate in this round. Notably, new investors including Nvidia and Apple are also set to come on board. Sequoia Capital, a previous investor, is in discussions to rejoin the funding effort.
The proposed restructuring, which includes the removal of the profit cap, requires approval from OpenAI’s non-profit board. This board includes Chief Executive Sam Altman, entrepreneur Bret Taylor, and seven other members. If the restructuring is not successful, OpenAI may face a need to renegotiate its valuation with investors, potentially converting shares at a lower rate.
The substantial funding round has generated strong investor interest and could be finalized within the next two weeks, driven by OpenAI’s rapid revenue growth and its ambitious goals in the AI sector. OpenAI has yet to comment on the details of the financing or the associated structural changes.
