OpenAI, the AI startup that developed ChatGPT, has raised over $300 million in a funding round led by venture capital firms including Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global.
This comes after Microsoft invested $10 billion in the company earlier this year.
The latest investment round values OpenAI at between $27 billion and $29 billion, according to sources. While OpenAI has not commented on how it plans to use the funding, insiders suggest that the VCs are backing the company financially, while Microsoft is investing with a strategic angle to integrate OpenAI's technology across its business.
This funding is expected to create new opportunities for OpenAI as it continues to develop its ecosystem around the GPT-4 model and the generative AI service, ChatGPT.
OpenAI has acknowledged the work that still needs to be done to improve the technology and continues to develop services and iterate. Since its founding in 2015, OpenAI has focused exclusively on AI, giving the company significant momentum in the field.
The funding round will allow OpenAI to explore the potential of AI further and offer more opportunities for growth. As investors seek to invest in AI startups, OpenAI's latest funding round is likely to attract attention as a valuable proposition for those looking to invest in the future of AI.