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Investing.com -- OpenAI has secured $8.3 billion in funding at a $300 billion valuation, exceeding its target and completing the fundraising months ahead of schedule, according to the New York Times (NYSE:NYT) DealBook Newsletter.
The artificial intelligence company had initially planned to raise $7.5 billion by the end of 2025 as part of its larger $40 billion funding strategy announced in March. SoftBank (TYO:9984) had previously committed to provide $30 billion by year-end.
Dragoneer Investment Group led the round with a $2.8 billion commitment, potentially one of the largest single venture capital investments ever made. The funding round attracted numerous new investors, including private equity firms Blackstone (NYSE:BX) and TPG, along with mutual fund manager T. Rowe Price.
Other participants included Fidelity Management, Founders Fund, Sequoia Capital, Andreessen Horowitz, Coatue Management, Altimeter Capital, D1 Capital Partners (WA:CPAP), Tiger Global and Thrive Capital.
The round was five times oversubscribed.
The report also noted that the company’s business metrics show significant growth, with annual recurring revenue reaching $13 billion, up from $10 billion in June, and projected to exceed $20 billion by the end of 2025. Paid business users of ChatGPT have increased to five million, up from three million a few months ago.