OpenAI Secures $300 Million in Separate VC Tender Offer at $29 Billion Valuation
OpenAI raises over $300 million from major venture capital firms in a secondary tender offer, reaching a valuation of up to $29 billion. This funding round operates completely separately from the $10 billion strategic investment Microsoft closes in January.
OpenAI, the startup behind the popular conversational AI model ChatGPT, brings in new financial backers through a tender offer. Venture capital firms including Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global pick up new shares, while Founders Fund also joins the investment round. Altogether, these VCs put in just over $300 million at a valuation 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 invests to integrate OpenAI's technology across its various business products, these venture capital firms enter purely as financial backers. Documents show that investors sign term sheets and transfer the money, leaving only the final countersigning from OpenAI to officially complete the transaction.
This new injection of capital means outside investors now own more than 30% of OpenAI. The participation of major VC firms like Sequoia and Andreessen Horowitz stands out during a period when many venture capitalists significantly slow down their investing pace and hold onto their reserves. The funding round includes a mix of returning earlier investors and first-time backers like Founders Fund, Thrive, and K2 Global.