Reuters, citing The New York Times, reported more rumors about a new round of funding for OpenAI, with Thrive Capital expected to play a key role. Thrive Capital aims to invest $1 billion this year and the next, while Apple chose to drop out of the funding race at the negotiation stage.
Funding Expectations and Key Players
OpenAI is targeting about $6.5 billion from investors in the near future, with negotiations expected to finalize next week. The Wall Street Journal revealed that Apple chose not to participate in this round. However, Nvidia and Microsoft remain involved, and Microsoft might contribute an additional $1 billion, despite having already invested approximately $13 billion in OpenAI. The new round is projected to elevate OpenAI’s valuation to over $100 billion.
Thrive Capital’s Role and Investment Conditions
In negotiations with Thrive Capital, OpenAI has promised to triple its revenue from the current $3.7 billion to $11.6 billion, encouraging the fund to invest over $1 billion this year and a similar amount next year. However, Thrive Capital’s commitment to invest the second billion hinges on OpenAI reaching the $11.6 billion revenue mark next year. We’ll keep you updated on this progress. OpenAI expects losses of $5 billion this year, mainly due to high computing infrastructure development costs.
Plans for the Next Funding Round
By the end of next week, OpenAI plans to finalize the next round of financing, aiming to raise funds through convertible bonds, with an estimated valuation of $150 billion. Investors are pushing for OpenAI’s restructuring into a more commercial entity, reducing the non-profit component’s influence. Thrive Capital is the only investor that has agreed to buy bonds at the current price next year, potentially allowing it to increase its stake cost-effectively, notes NIX Solutions. OpenAI’s revenue from commercial ChatGPT subscriptions alone is expected to reach $2.7 billion this year, with around 10 million users paying $20 per month.