The failure of the technology startup to transition to a business model that is profitable could result in the loss of investors.
As a result of OpenAI’s transition into a business that operates for profit, the company is currently generating a sizeable profit. According to the Wall Street Journal, OpenAI has successfully raised $6.6 billion in new capital from investors, bringing its valuation to $157 billion, which is roughly double what it was before. With the additional money, it is now the largest venture capital deal in the history of the industry.
Immediately following the announcement that the artificial intelligence startup intended to transition from a benevolent non-profit organization to a for-profit, product-focused business, the new investors got on board. According to Axios, investors have the right to withdraw their financing in the event that OpenAI is unable to successfully transition to a for-profit business model.
The venture capital firm Thrive Capital, which was established by Joshua Kushner, the youngest son of Charles Kushner, a real estate mogul who was convicted of a crime but later pardoned, was the company that led the latest round of fundraising with $1.25 billion. Other investors included SoftBank, Nvidia, Fidelity Management, and Microsoft, which was OpenAI’s largest investor in the past.
Apple is a name that stands out as being conspicuously absent among the listed investors. The internet giant was in the process of arranging a financial contract, but it appears that the accord did not meet with the desired outcome.
There are other aspects of OpenAI that are expanding in addition to funding. ChatGPT, the company’s artificial intelligence app, has garnered 11 million paid customers and 250 million weekly active users, which is an increase from the 200 million users that were revealed at the end of August. As a result of the increased usage rate, OpenAI authorities are considering increasing the monthly subscription fee for ChatGPT to $22 by the end of the year and then to $44 by the end of the next five years.