OpenAI Reportedly Raises $8.3 Billion, Valued at $300 Billion

OpenAI, the developer of ChatGPT, has successfully raised $8.3 billion, reaching a valuation of $300 billion, as reported by The New York Times. This funding is integral to OpenAI’s objective of generating $40 billion this year.

The oversubscribed funding round took place sooner than expected, according to the NYT. OpenAI originally secured $2.5 billion from venture capital firms in March when it announced plans to raise $40 billion in a round led by SoftBank. Although the AI leader aimed to add another $7.5 billion by year’s end, strong interest from investors has accelerated this timeline amid significant growth.

On Thursday, The Information reported that OpenAI has reached $12 billion in annualized revenue and surpassed 700 million weekly active users for ChatGPT. Today, The Times adjusted that figure to nearly $13 billion, with estimates indicating it could reach $20 billion by the end of the year. Contributing factors include the AI Action Plan from the Trump administration and talks with Microsoft that may pave the way for the startup’s evolution into a fully-fledged for-profit organization.

The Times highlighted that Dragoneer Investment Group, a relatively unknown investor, led the round with a remarkable $2.8 billion investment. Many new investors participated in this funding round, including major private equity firms such as Blackstone and TPG, along with mutual fund manager T. Rowe Price. Other participants included Altimeter Capital, Andreessen Horowitz, Coatue Management, D1 Capital Partners, Fidelity Management, Founders Fund, Sequoia Capital, Tiger Global, and Thrive Capital.

Some early investors in OpenAI voiced concerns about the reduced allocations they received in this round as the AI powerhouse focused on bringing in new strategic partners.

TechCrunch has reached out to OpenAI for further comments.