OpenAI raises $300 million in funding round led by top VCs at valuation of $27 billion to $29 billion

OpenAI, the artificial intelligence startup behind the popular conversational AI model ChatGPT, has recently gained new investors, according to sources. Venture capital firms, such as Andreessen Horowitz, K2 Global, Sequoia Capital, Thrive, and Tiger Global, have invested over $300 million in OpenAI, resulting in a valuation of $27 billion to $29 billion. These investors will own more than 30% of the company, with Microsoft’s $10 billion investment earlier this year being a significant strategic move to integrate OpenAI technology into its business. Although OpenAI declined to comment, the tender offer reported by the Wall Street Journal in January has reportedly been closed with signed term sheets and funds transferred.

While OpenAI has been receiving attention for its success in generative AI, especially with ChatGPT, the company has also faced controversies, with people questioning its accuracy, safety, privacy, and potential toxicity. Despite these issues, OpenAI’s valuation and growing ecosystem around its technology has attracted many investors interested in the potential of AI. Other big tech companies, such as Google and Meta, have also released their own generative AI models, further emphasizing the growing importance of AI in the tech industry. However, with OpenAI’s singular focus on AI since its founding in 2015 and its significant investments, the company appears to be the closest thing we have to a winner in the AI space at present.

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