OpenAI, the artificial intelligence powerhouse, has raised an impressive $6.6 billion in new funding from investors, according to a report by The Wall Street Journal. This massive influx nearly doubles the company’s valuation, pushing it to $157 billion. Notably, this also marks the largest venture capital deal in history.
The surge of new funding comes as OpenAI transitions from a charitable non-profit model to a for-profit, product-focused company. This shift is crucial, as investors have the right to withdraw their funding if OpenAI does not successfully make the transition, according to a report from Axios.
Thrive Capital, the venture-capital firm founded by Joshua Kushner, led the investment round with $1.25 billion. Other key investors include SoftBank, Nvidia, Fidelity Management, and Microsoft, OpenAI’s previous largest investor. Interestingly, Apple was reportedly negotiating to join the funding round, but the deal ultimately fell through.
Alongside its skyrocketing funding, OpenAI’s ChatGPT has experienced significant growth. The popular AI app now boasts 250 million weekly active users, up from 200 million in August. It also has 11 million paying subscribers. Due to its increasing popularity, OpenAI is considering raising the subscription price for ChatGPT to $22 per month by the end of the year, with plans to push that up to $44 per month over the next five years.
