OpenAI secures record $122bn funding, IPO hopes rise

OpenAI unveiled on Tuesday that it achieved a groundbreaking investment round at a post-money valuation of $852 billion.

The total amounted to $122 billion of committed funds, rising from the $110 billion value previously stated by the company in February.

SoftBank took the lead in this round together with other investors such as Andreessen Horowitz and D. E. Shaw Ventures, according to OpenAI.

OpenAI initiated the artificial intelligence (AI) revolution by launching its ChatGPT chatbot in 2022, significantly expanding to become one of the swiftest-growing business entities in the world.

By March, ChatGPT boasted over 900 million active users weekly, including more than 50 million subscribers.

"AI is enhancing efficiency, accelerating breakthroughs, and broadening what people and businesses are able to create," OpenAI announced. "With this funding, we can keep advancing at the level required by these times."

Following the close of this recent funding round, OpenAI's CEO Sam Altman faces the task of validating the company's extensive valuation, especially as it moves towards a possible IPO.

The company has been scaling down certain major expenditure plans and has discontinued certain services and products lately, including its short-form video app Sora, aiming to cut down expenses.

OpenAI declared that its monthly revenue reaches $2 billion. Last year, it generated $13.1 billion in revenue. The company is consuming cash rapidly and has not yet attained profitability.

In February, OpenAI shared $110 billion in commitments from key investors that anchored its fundraising efforts.

Amazon committed up to $50 billion, Nvidia invested $30 billion, while SoftBank also committed $30 billion.

The additional $12 billion raised by OpenAI came from a wider range of investors. OpenAI noted that it allowed investor engagement through banking channels for the first time and obtained $3 billion from individual investors.

Microsoft, a major long-time partner of OpenAI, also took part, yet the level of its investment remained undisclosed as of Tuesday's announcement.

By the end of last year, Microsoft had invested over $13 billion in the company.