Update from October 3, 2024:
OpenAI has reportedly asked its investors not to back several competing AI companies, according to Reuters. The request, which is not legally binding, includes xAI, Anthropic, Perplexity, Glean, and SSI.
Safe Super Intelligence (SSI), the last company on this list, is a new AI startup founded by former OpenAI chief scientist and co-founder Ilya Sutskever. SSI aims to develop superintelligence as directly as possible, and has already received about $1 billion in research funding based on this promise alone.
Sutskever left OpenAI in May after being involved in the temporary dismissal of OpenAI CEO Sam Altman as a board member in November 2023. Reports suggest he had previously expressed concerns about the rapid commercialization pushed by Altman and the associated safety risks.
In addition, OpenAI has received a four billion dollar loan from a number of banks.
Update:
OpenAI has asked investors in its latest funding round not to back rival AI startups, the Financial Times reports. Sources familiar with the matter say OpenAI expects investors to be fully committed to its business. The company is using this rationale to prohibit investments in competitors. According to the FT, US rivals Anthropic and Elon Musk's xAI are among the companies that OpenAI investors are being asked to avoid backing.
This move by OpenAI highlights the increasingly competitive landscape in the AI industry as companies vie for funding and talent. By asking investors to exclusively support its efforts, OpenAI appears to be trying to consolidate its position as a leader in AI development.
The request also raises questions about how it may impact the broader AI ecosystem and investor strategies in the sector. Some may view it as an aggressive tactic by OpenAI to limit support for potential rivals.
Original article:
OpenAI secures $6.6 billion in funding, targets AI agents as new growth engine
OpenAI has raised $6.6 billion in a new funding round, valuing the AI company at $157 billion.
The fresh capital will be used to advance the development of frontier AI models, expand computing capabilities, and create tools "that help people solve hard problems," OpenAI says.
The company's ultimate goal remains the creation of Artificial General Intelligence (AGI) that "benefits all of humanity." OpenAI reports that ChatGPT currently has more than 250 million weekly users, including a reported 10 million subscribers who pay $20 per month for the service.
Agentic AI as a new growth driver
While OpenAI has not officially disclosed the investors in this funding round, the New York Times reports that Thrive Capital is leading the round with $1.3 billion, with an option to invest an additional $1 billion at the same $157 valuation.
Microsoft is expected to invest $1 billion, while SoftBank is said to be contributing $500 million. Nvidia and the United Arab Emirates state fund MGX are also said to be investing. Apple has reportedly withdrawn from investment discussions.
OpenAI is betting big on agent-based AI systems as a key driver of future growth. Kevin Weil, Chief Product Officer at OpenAI, told the Financial Times, "These agent-based systems will be possible, and that's why I believe that 2025 will be the year when agent-based systems finally reach the mainstream." Users should be able to interact with AI in "all of the ways that you interact with another human being."
OpenAI has reportedly set aggressive revenue goals for the coming years. The company aims to increase its revenue from the current $4 billion to $11.6 billion by 2025. For 2026, OpenAI is targeting $25.6 billion in revenue, with plans to reach $100 billion by 2029. Internal documents suggest that ChatGPT's subscription price could increase to as much as $44 within the next five years.
