Business News: OpenAI, the creator of ChatGPT, has raised $6.6 billion in funding, boosting its post-money valuation to $157 billion, positioning it as one of the most valuable private companies globally. The company has garnered worldwide attention due to the rapid popularity of ChatGPT, which now has 250 million weekly active users. OpenAI’s valuation surged from $14 billion in 2021 to $157 billion, with revenues climbing from zero to $3.6 billion, far surpassing CEO Sam Altman’s earlier forecasts.

Bloomberg reports that investors in this funding round have the option to reclaim their investment if OpenAI does not transition into a for-profit entity within two years. Major investors include Microsoft, which has already invested $13 billion, and Nvidia, whose processors are vital to AI technology. Thrive Capital, led by Josh Kushner, spearheaded the funding, with contributions from Khosla Ventures, Altimeter Capital, Fidelity, SoftBank, and Abu Dhabi’s new tech investment firm, MGX. However, Apple did not participate in this round, despite discussions about integrating ChatGPT into its devices and Siri, and plans for gaining a board observer role were abandoned.

This fundraising comes amid leadership changes at OpenAI, with key executives such as CTO Mira Murati, Chief Research Officer Bob McGrew, and VP Barret Zoph recently stepping down. Only three of the 13 founding members from 2015 remain. The funds were raised through convertible notes, contingent upon OpenAI’s shift to a for-profit structure, lifting the cap on investor returns and eliminating the control of the nonprofit board.

Despite these changes, investor confidence remains strong, buoyed by growth projections from Altman and CFO Sarah Friar. OpenAI is projected to generate $3.6 billion in revenue this year, with losses exceeding $5 billion, but revenue is expected to rise to $11.6 billion next year. Investors have secured protections during OpenAI’s ongoing restructuring, with negotiations continuing but no fixed timeline for completion.