AI startup OpenAI announced the closure of a $122 billion funding round, valuing the company at $852 billion.
“OpenAI is becoming the foundational infrastructure for artificial intelligence, enabling people and businesses worldwide to create new solutions. The broad reach of ChatGPT forms a powerful distribution channel,” the company blog states.
According to platform representatives, it is demonstrating record growth rates. The weekly active user base has successively reached 10 million, 100 million, and is soon expected to approach 1 billion.
Within a year of launching ChatGPT, the startup generated $1 billion in revenue. By the end of 2024, it was generating $1 billion per quarter, and now it is $2 billion per month.
“We are growing four times faster than companies that defined the internet and mobile technology eras, including Alphabet and Meta,” noted OpenAI.
The funds raised will be used to scale the business. The round was led by strategic partners Amazon, Nvidia, and SoftBank, with participation from Microsoft. It also included a16z, D. E. Shaw Ventures, MGX, TPG, and funds managed by T. Rowe Price Associates.
Other participants included Altimeter, Appaloosa LP, ARK Invest, funds from BlackRock and Blackstone, Coatue, D1 Capital Partners, Dragoneer, Fidelity, Goanna Capital, Insight Partners, The Paragon Group, Sands Capital, Sequoia Capital, Sound Ventures, Temasek, Thrive Capital, UC Investments, and Winslow Capital.
The company opened access for private investors through banking channels, raising an additional $3 billion. In the future, OpenAI shares will be included in several ETFs from ARK Invest.
Additionally, the startup expanded its credit line to $4.7 billion, provided by a consortium of major banks, including JPMorgan, Citi, Goldman Sachs, Morgan Stanley, Wells Fargo, Mizuho, Royal Bank of Canada, SMBC, UBS, HSBC, and Santander.
Computing as an Advantage
The company identified computing as a strategic advantage, forming the basis of all AI: research, models, products, and revenue. Since the launch of ChatGPT, the company’s available resources have grown alongside its revenue.
Infrastructure development allows for training more advanced models. Simultaneously, algorithms and hardware reduce data processing costs, making each generated token cheaper.
“An accumulation effect arises—the better infrastructure reduces costs, while improved products increase revenue per unit of computation,” the blog states.
Over the past 15 months, the firm has significantly expanded its infrastructure strategy. Nvidia remains its foundation, with additional solutions from Microsoft, Oracle, AWS, CoreWeave, Google Cloud, AMD, Trainium, Cerebras, Broadcom, SBE, and SoftBank.
Unified Ecosystem
OpenAI announced the creation of a unified “AI super app”.
“Users need not a set of disparate tools, but a unified system that understands intentions and performs tasks,” the startup emphasized.
The universal application will integrate the functionality of ChatGPT, Codex, a browser, and AI agents.
Back in March, OpenAI announced the closure of the Sora application.