OpenAI rakes in over $6 billion in new funding

Now that OpenAI is becoming a for-profit company, it’s making a tidy profit in the process. The Wall Street Journal reported that OpenAI has raised $6.6 billion in new funding from investors, nearly doubling its value to $157 billion. The new funding also makes it the largest venture capital deal in history.

The new investors jumped on board after the artificial intelligence startup planned to switch from a charitable non-profit to a for-profit, product-focused company. If OpenAI fails to make the move to for-profit, investors have the right to pull their funding, according to Axios.

The venture-capital firm Thrive Capital founded by Joshua Kushner, the youngest son of convicted-turned-pardoned real estate developer Charles Kushner, led the new round of funding with $1.25 billion. Other investors included SoftBank, Nvidia, Fidelity Management and OpenAI’s previous largest investor Microsoft.

One name that was notably absent from the investor list is Apple. The tech giant was in the process of negotiating a funding deal but apparently the agreement fell apart.

Funding isn’t the only thing that’s growing for OpenAI. Its AI app ChatGPT has attracted 250 million weekly active users, up from the 200 million announced at the end of August, and 11 million paying subscribers. The higher usage rate has OpenAI officials thinking they should raise the subscription price for ChatGPT to $22 a month by the end of the year and $44 a month in the next five years.

This article originally appeared on Engadget at https://www.engadget.com/ai/openai-rakes-in-over-6-billion-in-new-funding-192110908.html?src=rss https://www.engadget.com/ai/openai-rakes-in-over-6-billion-in-new-funding-192110908.html?src=rss