OpenAI, the startup behind the widely used conversational AI model ChatGPT, has attracted new investors, including Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global.
According to TechCrunch, Founders Fund is also investing. The VCs have together invested somewhat more than $300 million at a valuation of $27 billion to $29 billion.
Also, Microsoft’s investment is estimated to be over $10 billion.
While Microsoft’s investment has a strong strategic component — the tech behemoth is working to integrate OpenAI’s technology across a number of areas of its business — the venture capitalists are coming in as financial backers.
According to the source, outside investors currently possess more than 30% of OpenAI.
According to PitchBook data, Peter Thiel appears to have previously backed the startup, but this looks to be the first time Founders Fund will invest; K2 Global, a firm with just one partner, Ozi Amanat, and Thrive are also first-time investors of the startup.
According to PitchBook data, Sequoia, A16Z, and Tiger Global were among the company’s early investors.