OpenAI raises additional $10 billion, pushing record funding round to $120 billion total

OpenAI Set to Raise About $10 Billion From MGX, Coatue, Thrive

Ask Mark Gurman Anything About Apple Ask Mark Gurman Anything About Apple Ask Mark Gurman Anything About Apple From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. Click to listen Click to listen Click to listen Click to listen OpenAI is nearing a deal to raise about $10 billion from venture investors, according to people familiar with the matter, bringing the total haul from its latest funding round to roughly $120 billion. Abu Dhabi's MGX, Coatue Management and Thrive Capital are set to participate in the round at a $730 billion valuation, not including the money raised, said the people, who spoke on condition of anonymity to discuss private information. Altimeter Capital is also planning to put in money, the people said. The investments are expected to be finalized by the end of this month, the people said. Talks are ongoing and the final amount could change. The ChatGPT maker announced last month that it had finalized a deal to raise $110 billion in funding from Amazon.com Inc., Nvidia Corp. and SoftBank Group Corp. Bloomberg News previously reported OpenAI planned to seek more money from venture firms before completing the round. OpenAI declined to comment. Representatives for Coatue, MGX, Thrive and Altimeter did not respond to requests for comment. The deal marks OpenAI's largest funding round to date and bolsters its costly push to secure more computing power and talent for AI development. The additional capital would bring OpenAI's valuation to around $850 billion, including the money raised. OpenAI rival Anthropic PBC completed a deal last month to raise $30 billion from investors at a $380 billion valuation. MGX co-led that funding round.

OpenAI raises additional money to bring record funding round to $120 billion, CFO tells Cramer

"It didn't matter where you went, people really believed in this AI revolution and they wanted to put their money to work behind it," Friar said. OpenAI is raising an additional $10 billion from investors as part of its historic funding round, CFO Sarah Friar told CNBC's Jim Cramer on Tuesday. The fresh capital brings OpenAI's record fundraise to "north of $120 billion," Friar said in an interview on "Mad Money." That well exceeds the ChatGPT creator's initial target of $100 billion. OpenAI announced the first tranche of investment in late February, and it's been seen as potentially its last private fundraise before a potential blockbuster initial public offering. Andreessen Horowitz, D.E. Shaw, MGX, TPG and T. Rowe Price are participants in the new $10 billion commitment, according to Friar. Additionally, Microsoft, a longtime investor in OpenAI and one of its major computing providers, is joining this part of the funding round. While the relationship between Microsoft and OpenAI has evolved, Friar called Microsoft "an incredible partner" and complimented its CEO, Satya Nadella, for being "there early." "What I'm really pleased about is we raised money all around the ecosystem," Friar told Cramer, pointing to involve from venture capital firms, private equity players, mutual funds and sovereign entities. "It didn't matter where you went, people really believed in this AI revolution and they wanted to put their money to work behind it," she added. Friar's update Tuesday come roughly a month after OpenAI initially announced a $110 billion raise at a $730 billion pre-money valuation. In that wave, Amazon invested $50 billion, while Nvidia and SoftBank each committed $30 billion. In addition to its investment, Amazon announced a multi-year partnership with OpenAI. The companies will build custom models that will support Amazon's customer-facing applications. OpenAI also said that it will expand its existing $38 billion agreement with Amazon's cloud computing division by $100 billion over the next eight years. "We're super excited about this deal," OpenAI CEO Sam Altman told CNBC after the funding news last month. "AI is going to happen everywhere. It's transforming the whole economy, and the world needs a lot of collective computing power to meet the demand." OpenAI, which was founded in 2015, has seen unprecedented growth since launching ChatGPT in late 2022. The viral chatbot has amassed 900 million weekly active users, and the startup raked in roughly $13.1 billion in revenue last year, CNBC has reported.

OpenAI set to raise about $10 billion from MGX, Coatue, Thrive - The Economic Times

OpenAI is nearing a deal to raise about $10 billion from venture investors, lifting its latest funding round to roughly $120 billion. Backers include MGX, Coatue Management, Thrive Capital, and Altimeter Capital. The deal would support its push for computing power and talent, marking its largest funding round yet.OpenAI is nearing a deal to raise about $10 billion from venture investors, according to people familiar with the matter, bringing the total haul from its latest funding round to roughly $120 billion. Abu Dhabi's MGX, Coatue Management and Thrive Capital are set to participate in the round at a $730 billion valuation, not including the money raised, said the people, who spoke on condition of anonymity to discuss private information. Altimeter Capital is also planning to put in money, the people said. The investments are expected to be finalised by the end of this month, the people said. Talks are ongoing and the final amount could change. The ChatGPT maker announced last month that it had finalized a deal to raise $110 billion in funding from Amazon.com Inc., Nvidia Corp. and SoftBank Group Corp. Bloomberg News previously reported OpenAI planned to seek more money from venture firms before completing the round. OpenAI declined to comment. Representatives for Coatue, MGX, Thrive and Altimeter did not respond to requests for comment. The deal marks OpenAI's largest funding round to date and bolsters its costly push to secure more computing power and talent for AI development. The additional capital would bring OpenAI's valuation to around $850 billion, including the money raised. OpenAI rival Anthropic PBC completed a deal last month to raise $30 billion from investors at a $380 billion valuation. MGX co-led that funding round.