OpenAI, the parent company of AI-powered language model ChatGPT and image generation platform DALL-E, has closed a funding round raising $300 million, bringing its valuation to between $27 billion and $29 billion.
The funding round included participation from Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global.
While neither investors nor OpenAI have commented on what the funding will be used for, OpenAI’s products have already gained popularity with users worldwide. Within four months of its launch, ChatGPT has reached 100 million users, and other companies such as Google and Dropbox are incorporating AI into their systems.
The funding round comes after OpenAI’s January 2023 undisclosed funding round with Microsoft, in which Microsoft announced its investment in the AI company and extended its partnership with OpenAI. According to sources at TechCrunch, Microsoft’s investment in OpenAI was worth $10 billion.
OpenAI was founded in 2015 by Elon Musk and other tech leaders with the goal of developing AI in a safe and beneficial way for society. While Musk has since left the company, OpenAI has continued to grow and develop its AI products.
For the most part, the success of OpenAI has spurred other companies to incorporate AI into their systems, and the company’s growth is likely to continue with the latest funding round. The company’s focus on developing AI safely and ethically is also an important factor, as the use of AI continues to grow across industries.
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