OpenAI Secures $300 Million From Top VCs at $29 Billion Valuation
OpenAI raises over $300 million from prominent venture capital firms in a separate tender offer that values the ChatGPT creator at up to $29 billion. This financial backing occurs independently of Microsoft's massive $10 billion strategic investment that closed earlier in January.
OpenAI, the startup behind the widely used conversational AI model ChatGPT, collects just over $300 million from prominent VC firms including Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global. Founders Fund also joins this funding round, which values the company at between $27 billion and $29 billion. This tender offer operates completely separately from the massive $10 billion strategic investment from Microsoft that closes in January.
While Microsoft integrates OpenAI's technology across its various business divisions, these venture capital firms enter purely as financial backers. Documents indicate that investors have already signed term sheets and transferred the funds, leaving only OpenAI's countersignature to finalize the deal. The plan initially involves making this investment public next week.
This influx of capital pushes outside investor ownership of OpenAI past the 30% mark. Although Sequoia and Andreessen Horowitz appear as earlier investors in PitchBook data, Founders Fund, K2 Global, and Thrive participate as first-time backers. This bold move stands out notably during a broader tech financial crisis where many venture capitalists significantly slow down their investing pace and hold onto their reserves.