ChatGPT-maker OpenAI’s valuation soared to $157 billion on Wednesday, Oct. 2, after a fresh round of funding. This makes it the second most valuable private company in the world behind TikTok-parent company Bytedance and just ahead of SpaceX.
OpenAI just secured $6.6 billion in funding from investors. Some of the names involved include venture capital investors such as Thrive Capital and Khosla Ventures. It also received bigtime corporate support from Microsoft and a new investment from Nvidia, whose 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 also took part in the latest round.
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Since ChatGPT became available to the public, OpenAI has boasted 250 million weekly active users. And its valuation has skyrocketed from $14 billion in 2021 to $157 billion in 2024.
The investment round 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 four 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, instead 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 reportedly in talks to make an investment in the tech company, according to Reuters. However, it didn’t happen during this round.
OpenAI 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.
