Nvidia and 6 other firms that could get in on OpenAI's next big funding round
Amid a spate of executive resignations and reports that it’s spending more than it’s making, OpenAI is reportedly preparing to close a $6.5 billion funding round that could value the artificial intelligence startup at $150 billion.
Thrive Capital is reported to be leading the round, and tech behemoths Microsoft (MSFT) and Nvidia (NVDA) are reportedly involved in talks too. Apple (AAPL), which has a partnership with OpenAI to integrate ChatGPT into its iPhone operating system, recently dropped out of talks to participate in the funding round, The Wall Street Journal reported.
As OpenAI looks for investors for its multi-billion dollar round, it is also talking to investors about restructuring its non-profit status to attract investors, the Financial Times reported, citing unnamed people familiar with the matter.
And as it considers a for-profit structure, chief executive Sam Altman has reportedly told employees he doesn’t plan to get a “giant equity stake” in the company. During a meeting with Altman and Sarah Friar, OpenAI’s chief financial officer, both leaders told employees that the company’s investors are concerned over Altman not having equity, CNBC reported.
Here are the companies expected to invest in OpenAI’s $6.5 billion funding round.
Thrive Capital
Venture capital firm Thrive Capital is reportedly leading OpenAI’s funding round and investing over $1 billion. Thrive has invested $750 million into the round, and plans to use a special purpose vehicle to add $450 million more from other investors, The New York Times reported, citing unnamed people familiar with the matter.
Thrive did not immediately respond to a request for comment.
Tiger Global Management
Tiger Global, a venture capital firm, is reportedly investing an unclear amount of money into OpenAI. In 2021, Tiger purchased $125 million in shares of OpenAI, The Information reported. The firm was also part of a group of investors that pushed for Altman to be reinstated after he was fired from the startup in November.
Tiger did not immediately respond to a request for comment.
MGX
United Arab Emirates-backed investment fund MGX is reportedly participating in the funding round. MGX, which was launched by the U.A.E. in March to invest in AI projects, hasn’t decided the size of its potential investment, The Wall Street Journal reported, citing unnamed people familiar with the matter. G42, a state-backed AI company, and the U.A.E.’s wealth fund, Mubadala Investment, are founding partners of the investment fund.
MGX did not immediately respond to a request for comment.
Khosla Ventures
Khosla Ventures, which has previously invested in OpenAI, is expected to invest in the round through a special purpose vehicle, The Information reported, citing unnamed people familiar with the matter. Instead of using money from its venture funds, Khosla plans to raise money from limited partners, the people said.
Khosla Ventures did not immediately respond to a request for comment.
SoftBank
The SoftBank (SFTBY) Vision Fund is investing $500 million in the funding round, The Information reported, citing an unnamed person familiar with the matter. The investment would be the venture capital fund’s largest in a generative AI startup. In July, SoftBank chief executive Masayoshi Son blocked an investment into French AI startup Mistral to avoid issues with OpenAI, an unnamed person told The Information.
SoftBank did not immediately respond to a request for comment.
Microsoft
Microsoft, which has already invested over $13 billion into OpenAI, is reportedly in talks to participate in its latest funding round.
Microsoft declined to comment.
Nvidia
Nvidia, which designs the chips that power some of the world’s most powerful AI models, has discussed investing around $100 million in OpenAI, Bloomberg reported, citing unnamed people familiar with the matter.
Nvidia declined to comment.
