OpenAI, a leading artificial intelligence company, announced on Monday that it had completed a $40 billion fund-raising deal, doubling its valuation from just six months ago. The round was led by SoftBank and values OpenAI at $300 billion, making it one of the most valuable private companies in the world.
OpenAI made waves in late 2022 with the release of its online chatbot, ChatGPT, which now has 500 million users per week. The latest investment round reflects the continued excitement in the tech industry around A.I., despite concerns about its effectiveness and safety.
The $40 billion investment will be made in two parts, with SoftBank providing 75 percent of the total. Other investors include Microsoft, Thrive Capital, Coatue, and Altimeter. OpenAI was initially created as a nonprofit in 2015, but shifted to a for-profit model to raise the billions needed for A.I. development.
The company plans to transition to a public benefit corporation (P.B.C.), but faces challenges from Elon Musk, a co-founder who has sued OpenAI and its CEO, Sam Altman, claiming they breached the company’s founding contract. Musk had also made a bid to buy OpenAI’s assets for over $97 billion, further complicating the situation.
Despite these challenges, OpenAI remains focused on pushing the boundaries of A.I. technology to make it more useful in everyday life. The company’s rapid growth and valuation reflect the increasing importance and potential of artificial intelligence in the tech industry.
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