OpenAI has secured approximately $11 billion in fresh funding at a valuation of $1.25 trillion, marking the first close of a much larger fundraising round as the ChatGPT maker continues to expand its artificial intelligence business.<\/p>\n
According to a Bloomberg report citing people familiar with the transaction, the funding was wired to the company as of Friday, November 6.<\/p>\n
The latest funding represents the initial portion of a round that could reach as much as $20 billion, with the remaining commitments expected to be completed in the coming weeks, one of the sources said.<\/p>\n
Investors participating in the first close include Coatue Management and T. Rowe Price, while other investors in the broader round include SoftBank Group, Sequoia Capital, Founders Fund and Andreessen Horowitz.<\/p>\n
A group of investors from the United Arab Emirates has also joined the fundraising, according to Bloomberg. OpenAI is additionally working with investment banks to raise capital from high-net-worth individuals and retail investors, potentially widening access to the investment opportunity.<\/p>\n
The latest funding comes after OpenAI reportedly scaled back its initial fundraising ambition following a reassessment of investor appetite and broader market conditions.<\/p>\n
The latest reported valuation of $1.25 trillion represents an increase of approximately 46.7% from its March valuation, highlighting the extraordinary premium investors continue to place on leading AI companies despite growing concerns about the cost of developing and operating advanced AI systems.<\/p>\n
OpenAI\u2019s fundraising comes against the backdrop of a rapidly expanding global AI investment market, which has attracted billions of dollars from technology companies, sovereign wealth funds, venture capital firms and institutional investors.<\/p>\n