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After the tremendous success of ChatGPT, its creator OpenAI has become the most valuable generative AI firm, which is backed by tech giant Microsoft. Within months of ChatGPT’s social media popularity, OpenAI attracted $10 billion from Microsoft, which wanted to integrate the AI chatbot into search engine Bing.
OpenAI has also managed to cash in on its valuation by raising $300 million through a share sale in April 2023. While the firm which also created Dall-E, reportedly lost $540 million in 2022 for developing ChatGPT and GPT-4, it has more than made up for that by attracting millions of users from 156 countries.
As OpenAI continues to lead the AI revolution that has shaken up the tech world, this article decodes how its valuation has grown by leaps and bounds.
In this research, we will find OpenAI Valuation as of 2023, What is the total funding for OpenAI?, Who are the shareholders of OpenAI? and How much revenue has OpenAI generated?
Although OpenAI’s stocks aren’t being traded publicly, you can still invest in Openai stock. The generative AI giant isn’t planning an IPO in the near future.
DATE | INVESTORS | AMOUNT | ROUND |
---|---|---|---|
– | Y Combinator, Elon Musk, Greg Brockman, Reid Hoffman, Jessica Livingston, Peter Thiel, Amazon Web Services, Infosys, Sam Altman | N/A | – Not yet verified |
Mar 2019* | Khosla Ventures | N/A | Seed Not yet verified |
Jul 2019 | Microsoft, Khosla Ventures, Microsoft for Startups MEA | $1.0b | Late VC |
Jan 2021* | Tiger Global Management, Andreessen Horowitz, Bedrock | N/A | Secondary |
Jan 2022 | Matthew Brown Companies | N/A | Secondary Not yet verified |
Jan 2023* | Microsoft | $10.0b Valuation: $29.0b | Late VC |
Apr 2023* | Tiger Global Management, Andreessen Horowitz, Thrive Capital, Sequoia Capital, K2 Global | $300m Valuation: $29.0b | Late VC |
OpenAI board which manages the OpenAI LP for profit company includes employees or members like:
fiscal year | Total Revenue |
Dec. 2021 | not disclosed |
Dec. 2020 | $3,481,784 |
Dec. 2019 | $31,932,729 |
Dec. 2018 | $49,968,631 |
Dec. 2017 | $33,228,665 |
Dec. 2016 | $13,807,074 |
Surprisingly OpenAI’s Losses Doubled to $540 Million in 2022
With OpenAI’s revenue expected to jump from $28 million in 2022, to $200 million in 2023, its valuation has also been surging from $20 billion by December 2022, to $30 billion now. It had closed a funding round of more than $10 billion in April, which triggered a major spike in its value.
The company which was started as a non-profit organization, is now being tipped to collect a revenue of $1 billion by 2024.
OpenAI has been investing in other AI startups as well, and has created a $175 million fund for the same.
After ChatGPT amassed 1 million users in just 5 days after launch, OpenAI has been able to clock more than 800 million unique users in a month as of March 2023. The user base has continued to grow even after OpenAI launched a paid subscription service ChatGPT Plus at $20 per month in February.
The valuation of the generative AI brand comes from its popularity as visits to its site went up from 266 million in December 2022 to 1 billion in February 2023, and increased by 180% to 1.8 billion in May.
OpenAI had been founded by serial entrepreneur Sam Altman alongside Tesla CEO Elon Musk, who later exited the firm. After the company’s success, Sam Altman’s net worth has reached an estimated $500 million from various ventures.
OpenAI is not just worth billions, but is making profits for small and large businesses globally, including Microsoft, which aims to boost all its services with generative AI ChatGPT. OpenAI’s other products such as text-to-image creator Dall-E will also continue to make waves as digital art grows.