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.ChatGPT-creator 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.OpenAI — which counts JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC among its recent investors — 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.The company is now valued at an estimated $157B, with its latest investment round being used to buy computing power from companies, including 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 whatwhile 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 theits entire nonprofit side of— the organization, the ChatGPT creator is moving full steam ahead toward one thing: money. Everyone fromknows former OpenAI employees to the general public know this won't be good for humanity, but itneither seems the govermentgovernment andnor the investment classseem aren'tto doing anything about itcare.