OpenAI’s advanced AI infrastructure development comes at a high cost. Even though the platform hasn’t achieved profitability yet, it continues to spend high amounts to expand its AI capabilities. In the first phase of a new funding round, the ChatGPT maker is expected to bring in over $100 billion. These funds can ensure OpenAI remains a leader in the AI industry.
The Company’s Overall Valuation Grows
Initially, OpenAI’s expected valuation was $830 billion, however, it could now exceed $850 billion. Yet, one source said that the company’s per-money value remains at $730 billion.
OpenAI is preparing to spend trillions on massive AI infrastructure improvements, so they need lots of funds for that. Even though OpenAI isn’t expected to turn profitable until 2030, these investments are considered worth the large costs because of how impactful ChatGPT has been. However, OpenAI has been testing new monetization methods such as advertisements, which could be impactful for them in the future.
Who’s Funding OpenAI?
Amazon.com Inc., SoftBank Group Corp., Nvidia Corp., and Microsoft Corp. are all said to have invested in OpenAI’s first funding round.
While the exact amount coming from each source isn’t confirmed, the amount will reach at least $100 billion based on the amounts discussed. Bloomberg reported that Amazon will invest up to $50 billion, SoftBank up to $30 billion, and Nvidia up to $20 billion. The funding amounts will be finalized by the end of the month.
After this finalization, the next phase of the deal will include venture capital firms, sovereign wealth funds, and other investors. Once that phase closes, the total amount is expected to grow substantially.
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