OpenAI
Headquarters: San Francisco
Year Founded: 2015
Employees: ~400 | 2022
Business Status: Generating Revenue
Industry Sectors: Artificial Intelligence & Machine Learning
What is OpenAI?
OpenAI’s mission is to ensure that artificial general intelligence (AGI), by which we mean highly autonomous systems that outperform humans at the most economically valuable work, benefits all of humanity. The company trained a model called ChatGPT, which interacts in a conversational way. The dialogue format allows ChatGPT to answer follow-up questions, admit mistakes, challenge incorrect premises, and reject inappropriate requests.
Update as of May 2, 2023
Citing documents, TechCrunch reported that the latest investment is coming from venture capitalists including Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, K2 Global, and Founders Fund.
According to a source, the capital infusion is different from Microsoft’s big investment, which was announced earlier this year.
The Windows maker’s investment closed in January and is said to be around $10bn, the publication said, citing a source.
Microsoft’s decision to back OpenAI has a strong strategic component because the tech behemoth is seeking to integrate OpenAI’s technology across several of its business units, but the VCs’ participation is only aimed at providing financial support.
Investors have already signed the term sheets and remitted the funds but OpenAI is yet to countersign them, the report said.
The source added that more than 30% of OpenAI is now controlled by outside investors.
Based on PitchBook’s data, OpenAI counts Peter Thiel, Sequoia, A16Z, and Tiger Global are existing investors.
Whereas VCs such as K2 Global and Thrive are first-time investors in OpenAI.
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Is OpenAI publicly traded?
OpenAI is a private company, its share can be bought pre-IPO from private investors.
What is PRE-IPO?
Most Recent Financing Status
In April 2023, OpenAI closed $300M share sale at $27B-29B valuation.
OpenAI stock
OpenAI stock price source: IPO CLUB Valuation at Market©
Who owns OpenAI?
OpenAI has 10 leading investors including Microsoft, Sequoia Capital, Tiger Global Management, and Bedrock Capital.
Latest news
Sep 2023: OpenAI stock investment memo
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Microsoft Corp. is investing $10 billion in OpenAI, whose artificial intelligence tool ChatGPT lit up the internet since its introduction in November, amassing more than a million users within days and touching off a fresh debate over AI in the workplace.
