Cathie Wood's Ark is doubling down on OpenAI with at least $250 million in its new funding round
Business InsiderOCT 12 2024
Artificial intelligence (AI) company and creator of ChatGPT, OpenAI, has received a $4B revolving credit line. This is on top of the $6.6B funding round it closed a day prior, bringing the company's liquidity to $10B.
OpenAI, whose latest investors include JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC, has the option for an additional $2B on top of the $4B over three years.
The company is now valued at an estimated $157B, with its latest investment round being used to buy compting power from companies like Microsoft to develop its products.
OpenAI has gone through some tumultuous times, but it's still growing both financially and productivity-wise. Despite losing many of its founding executives and scientists, Sam Altman has still been able to push ahead with the development of GPT-5 and achieve another multi-billion-dollar funding round. OpenAI is enduring what all start-ups endure—balancing creativity with sound business practice.
Any shred of OpenAI's founding philosophy has now disappeared. With a profit-driven CEO and board, not to mention the liquidation of the entire nonprofit side of the organization, the ChatGPT creator is moving full steam ahead toward one thing: money. Everyone from former OpenAI employees to the general public know this won't be good for humanity, but it seems the goverment and the investment class aren't doing anything about it.