OpenAI’s valuation surges to $157B after latest investment round

Lauren Taylor

ChatGPT-maker OpenAI’s valuation is continuing to grow – reaching $157 billion on Wednesday. This makes it the second most valuable private company in the world behind TikTok-parent Bytedance and just ahead of SpaceX.

That big number comes from the tech company securing $6.6 billion from investors.

OpenAI secured more funding from venture capital investors including Thrive Capital and Khosla Ventures. Meanwhile they received bigtime corporate support from their biggest backer Microsoft and a new investment from Nvidia.

Nvidia’s chips are crucial to the processing power needed for artificial intelligence.

Abu Dhabi’s global investment fund MGX along with investment firms Altimeter Capital, Fidelity and Softbank took part in the latest round.

The move comes after high profile executives recently left the company. This includes Chief Technology Officer, Mira Murati, who briefly served as CEO when the board fired Sam Altman before they brought him back 4 days later.

Reuters reported in September that the $157 billion valuation “hinges” on changing OpenAI’s corporate structure. This means the nonprofit would no longer be in control,

the company would be run with a for-profit mindset, and Altman would get a stake in the company that could be worth $10.5 billion.

Apple was in talks to make an investment in OpenAI, but didn’t end up joining the latest round according to Reuters.

The tech company is expected to generate $3.7 billion in revenue this year according to the New York Times, but estimates that number will jump to $11.6 billion in 2025.

Since ChatGPT became available to the public, OpenAI has boasted 250 million weekly active users.

As the company looks to become profitable, its valuation skyrocketed from $14 billion in 2021 to $157 billion today.