OpenAI is set to reach an impressive $11.6 billion in revenue by next year, positioning itself as a major AI player while opening doors for investors with a fresh opportunity to buy in by 2025.
According to people familiar with the matter, Thrive Capital is contributing more than $1 billion to OpenAI's current $6.5 billion fundraising round.
What other investors aren't getting is the opportunity to invest an additional $1 billion at the same valuation next year if the AI company meets a revenue target.
The individuals, who wished to remain anonymous, stated that OpenAI expects its income to soar to $11.6 billion in 2024 from an expected $3.7 billion.
According to one of the sources, losses could reach $5 billion this year, primarily based on their variable spending on processing power.
With the potential to finish by the end of next week, the current investment round—which takes the form of convertible debt—could put OpenAI's valuation at $150 billion, solidifying its place among the world's most valuable private enterprises.
This valuation is contingent upon completing a complex reorganisation that will eliminate the non-profit board's authority and abolish the investor return cap, as originally disclosed by Reuters.
However, there is no set timeframe for when the conversion might be finished.
The $1.2 billion being offered by Thrive Capital, which oversaw OpenAI's last investment round, comes from a combination of its own fund and a special purpose vehicle intended for smaller investors. Khosla Ventures, Apple, Microsoft, and Nvidia are among the other investors in the latest round.
