OpenAI Raises $110 Billion in the Largest Private Funding Round Ever (openai.com) 20
OpenAI has closed what is now the largest private financing in history -- a $110 billion round at a $730 billion pre-money valuation that more than doubles the $40 billion raise it completed just a year ago, itself a record for a private tech company at the time.
Amazon invested $50 billion, SoftBank put in $30 billion, and Nvidia committed $30 billion, and additional investors are expected to join as the round progresses. The valuation is a sharp jump from the $500 billion OpenAI commanded in a secondary financing in October, and the round dwarfs recent raises by rivals Anthropic ($30 billion) and xAI ($20 billion).
The company has been telling investors it is now targeting roughly $600 billion in total compute spend by 2030, a more measured figure than the $1.4 trillion in infrastructure commitments CEO Sam Altman had touted months earlier. OpenAI is projecting more than $280 billion in total revenue by 2030, split roughly equally between consumer and enterprise. ChatGPT now has over 900 million weekly active users and more than 50 million paying subscribers.
Amazon invested $50 billion, SoftBank put in $30 billion, and Nvidia committed $30 billion, and additional investors are expected to join as the round progresses. The valuation is a sharp jump from the $500 billion OpenAI commanded in a secondary financing in October, and the round dwarfs recent raises by rivals Anthropic ($30 billion) and xAI ($20 billion).
The company has been telling investors it is now targeting roughly $600 billion in total compute spend by 2030, a more measured figure than the $1.4 trillion in infrastructure commitments CEO Sam Altman had touted months earlier. OpenAI is projecting more than $280 billion in total revenue by 2030, split roughly equally between consumer and enterprise. ChatGPT now has over 900 million weekly active users and more than 50 million paying subscribers.
lol (Score:3)
we won't be seeing any cheap RAM for a while - even an "AI" outfit that has lost half of its market share and has no idea how to make money is drowning in stupid cash.
Re: (Score:2)
Money is becoming meaningless for these people. I have never been so shocked at the complete and utter irrelevance of the value of money in some circles. OpenAI should have crumbled months ago, as would have happened to any other company in a sane economy. When it does finally crumble, it will drag a significant portion of the economy with it.
Re: (Score:2)
I agree. It is a rush of the crazy for the holy grail and eternal life and world domination and screw the cost even to their children. The huge manatee is basically doomed.
Re: lol (Score:2)
Yeah money is meaningless because they have been living in this IPO/acquisition fantasy land where they can always pawn off whatever they "invested" in to individual investors or convince some big tech CEO to buy them out.
If OpenAI does manage to IPO... Ugh.
We are all going to pay for this, all of it. What do you think will happen when no one is buying all the excess electricity that is being built now? It's not like "dark fiber". If the utilities go bankrupt, the customers will foot the bill. If thet don't
Re: (Score:3, Insightful)
At least it will all get sold off cheaply when they crash and burn. Hopefully lots of ECC RAM and enterprise grade HDDs/SSDs will enter the user market at fire sale prices.
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Whoever modded this Troll is a moron.
Re: (Score:2)
Probably an AI. Or someone with an AI girlfriend.
Investing advice: (Score:2)
Said no successful investor ever....
Just think (Score:1)
If instead this was spent on making the lives of the citizens of this country better.
2026 for OpenAI (Score:2)
Superbowl Ads,
"Coding is dead in 6 months, fuck programmers",
Hype,
Funding,
"All White collar work is dead in 3 months, fuck you all",
Funding,
More Hype,
More funding,
"Sam Altman will use his AI to scratch his arse in 2 weeks",
IPO,
Most profitable non-profit in the history of mankind,
Uh oh, it doesn't actually scale any more,
Bankruptcy.
"Everybody, back to work."
Re: (Score:2)
Hype, Superbowl Ads, "Coding is dead in 6 months, fuck programmers", Hype, Funding, "All White collar work is dead in 3 months, fuck you all", Funding, More Hype, More funding, "Sam Altman will use his AI to scratch his arse in 2 weeks", IPO, Most profitable non-profit in the history of mankind, Uh oh, it doesn't actually scale any more, Bankruptcy. "Everybody, back to work."
You ever watch the Stock Exchange floor videos during a hype cycle? This feels very much like we've taken that Wall Street exuberance and turned it into a society-wide phenomenon, the hype is everywhere for this big new thing that's going to change the universe, except, we aren't seeing anywhere near the promised results. There's a moment when a hype cycle dies on the exchange floor where everybody gets quiet, and all the papers flying around just start slowly settling down, sometimes all the way to the flo
Re: (Score:3)
Why Amazon? (Score:1)
Amazon is spending billions of dollars a year to develop its own AI products. And developing chips that allow other companies to host their AI projects on AWS. Why are they investing in a company that competes with them and their customers?
The Billionaires’ plan for AI | Sen. Bernie (Score:2)
if you like that you can watch the whole thing here: https://www.youtube.com/watch?... [youtube.com]
Hey I came out of retirement for this. (Score:2)
I have been doing AI work for more than a year now. It's fun, really but where is my $2M signing bonus?
Prop them up! (Score:2)
Maybe they can buy a business model (Score:2)
Maybe they can buy a business model that provides real value to paying customers?
Ha
Ha
Ha
Time (Score:1)
why not dogfood the efficiency ? (Score:2)
Re: why not dogfood the efficiency ? (Score:2)
Channeling D.A. for a moment ...
Why can't our A.I. improve our business?
I guess our minds are just too highly trained