According to TechCrunch, OpenAI has attracted new investors, including Sequoia Capital, Tiger Global, Andreessen Horowitz, Thrive, and K2 Global, who have collectively invested over $300 million in the company at a valuation of $27 billion to $29 billion.
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OpenAI Receives Huge Support
Founders Fund is also reported to be investing. This is in addition to Microsoft’s investment of around $10 billion, which was announced earlier this year. It is believed that the recent investment represents the closing of the tender offer that was reported by the Wall Street Journal in January. When asked for comment, OpenAI declined to discuss the tender offer, which is separate from the Microsoft investment.
Microsoft and Other VCs Join Force
While Microsoft’s investment is driven by a strategic agenda, with plans to integrate OpenAI’s technology into various parts of its business, the VC firms investing in the ChatGPT-owned company are purely financial backers. According to an unnamed source, the VCs have signed term sheets and transferred the funds, with countersigning from the company still pending. These investors, which include new backers like K2 Global, Founders Fund, and Thrive, now own more than 30% of OpenAI. Other earlier investors in the company include Tiger Global, Sequoia, and A16Z.
As many VCs have slowed their investing pace and are waiting for better opportunities in the wake of the tech sector’s financial crisis, the ChatGPT-owned company potential is seen as a particularly attractive investment opportunity in the AI space right now.