OpenAI Finalizes $40 Billion Funding at $300 Billion Valuation
OpenAI, the artificial intelligence company behind ChatGPT, said it has finalized a funding round that will bring in $40 billion from SoftBank Group Corp. and other investors at a $300 billion valuation, including money raised.
The AI developer’s financing round is the largest of all time, according to data compiled by research firm PitchBook. The deal values the ChatGPT maker at almost double its previous valuation of $157 billionwhen it raised money in October. Bloomberg reported on March 26 that OpenAI was close to buttoning up the $40 billion financing deal.
“Hundreds of millions people use ChatGPT each week,” Chief Executive Officer Sam Altman said in a statement Monday. “This investment helps us push the frontier and make AI more useful in everyday life.”
SoftBank, which is leading the deal, will initially invest $7.5 billion in the company along with $2.5 billion from an investor syndicate, according to a person familiar with the agreement. Additional investors in the group include Microsoft Corp., Coatue Management, Altimeter Capital Management, and Thrive Capital, said the person, who asked not to be identified discussing private details. There will be a second tranche of $30 billion invested by the end of 2025, including $22.5 billion from SoftBank and $7.5 billion from a syndicate, this person said.
like this
Fitik likes this.
network_switch
in reply to misk • • •overload
in reply to network_switch • • •Midnitte
in reply to overload • • •Also the most accessible - just literally go to a website - don't even have to login if you don't want.
DeepSeek you have to install a fucking chrome extension (good luck doing that at work), or you have to create an account.
OpenAI still following the bigtech trend of "get them hooked for free, then make money"
B0rax
in reply to Midnitte • • •Umbrias
in reply to Midnitte • • •Midnitte
in reply to Umbrias • • •OpenAI confirms 400 million weekly ChatGPT users - here's 5 great ways to use the world’s most popular AI chatbot
Eric Hal Schwartz (TechRadar)Umbrias
in reply to Midnitte • • •Here's a recent reuters report. reuters.com/technology/artific…
160 million active users is quite literally worse than many mobile games developed for a tens of, maybe hundreds of thousands of, usd. 160 million active users for 40 billion funding (they have needed more than this, but i cant be assed to go tally their funding) means theyve spent $250 per user, and their costs only grow as people use it. That is not including the massive server time subsidies Azure has provided them. This is not a profitable company and never will be.
"Block Blast" on the google play store has 40 million daily active users, 160 million monthly, and the studio has around 30 people. Its revenue from ads alone is in the tens of millions per month if this case study is accurate. Oai claims their monthly revenue in the hundreds of millions… with operating costs at greater hundreds of millions. oai profit is negative, with no signs of improving without entirely changing their business plan.
Hungry Studio Achieved 10% Lift in ARPDAU | Moloco
Taewon Kang (www.moloco.com)Pete Hahnloser
in reply to network_switch • • •kjaeselrek
in reply to misk • • •Pete Hahnloser
in reply to misk • • •What is this? "Give us another $40 billion and we can have a compelling product"? AI at this point is glorified Clippy. And Altman has already said he needs $7 trillion.
I've used ChatGPT in daily work, and while it does things I need it to do, it's a timesaver, not some sort of view-the-whole-world-in-a-new-way-after-losing-one's-virginity solution, which is what it's been sold as since (apologies) release.