OpenAI, the company behind the popular AI chatbot ChatGPT, is close to securing a massive amount of money from investors, which could make the company worth a whopping $150 billion.

The company is hoping to raise $6.5 billion, but the demand from investors is so high that they are offering even more money than that. This shows just how excited people are about OpenAI's potential.

Leading the charge is Thrive Capital, a venture capital firm, which has pledged $1.25 billion. Big tech players like Microsoft, NVIDIA, and Apple are also in talks to invest significant sums, potentially between $2 billion and $3 billion combined. While the exact details of their investments aren't public yet, they could involve both cash and other valuable resources like computing power.

To keep the investor group manageable, OpenAI has set a high entry bar: a minimum investment of $250 million. This ensures that only a select group of very wealthy investors can participate.

Interestingly, Sequoia Capital, an early supporter of OpenAI, is not expected to join this funding round. This decision follows Sequoia's recent investment in a rival AI startup founded by OpenAI's former chief scientist.

This push for funding comes as OpenAI considers changing its structure to become a more traditional for-profit company, similar to its competitor Anthropic. This move could attract a wider range of investors in the future.

The overwhelming interest in this funding round highlights OpenAI's leading position in the rapidly growing field of artificial intelligence. The company's value has skyrocketed from $86 billion in its last funding round to an estimated $150 billion now, demonstrating the immense confidence investors have in its future.

Key details about this funding round include:

• Investor Participation: Major investors expected to participate include Microsoft, Nvidia, and Apple. Thrive Capital is leading the round with a notable investment of $1.25 billion.

• Investor Selection: Due to the oversubscription, OpenAI will need to select which investors will be allowed to participate, with some being informed that they will not make the cut.

• Corporate Restructuring: The funding round may involve structural changes at OpenAI, including discussions about removing a profit cap for investors. This change could significantly impact the company's governance and its original non-profit mission.

• Rapid Growth: OpenAI's revenue has been growing rapidly, driven by its popular products like ChatGPT and new ventures into AI-generated content. The company reportedly exceeded $2 billion in annual revenue earlier this year and has doubled its user base to over 200 million since late 2022.

The outcome of this funding round is anticipated within the next few weeks, as OpenAI navigates investor interests and potential changes to its operational structure.

OpenAI's funding rounds:

Date of funding	Funding Amount	Round Name	Post money valuation	Revenue multiple	Investors
Apr 12, 2024	Undisclosed	Series E	-	-	ARK Investment Management
Jan 24, 2024	$5M	Series E	-	-	MIS
Apr 28, 2023	$300M	Series E	-	-	Flat Capital, Tiger Global Management, Sequoia Capital, a16z, Thrive Capital, K2 Global, Founders Fund
Jan 23, 2023	$10B	Series E	$27B	-	Microsoft
Jul 22, 2019	$1B	Series D	-	-	Microsoft, Matthew Brown Companies
Jun 01, 2016	$120K	Seed	-	-	Y Combinator
Dec 01, 2015	$1B	Grant (prize money)	-	-	Peter Thiel, Reid Hoffman, Jessica Livingston, Elon Musk, Infosys, YC Research, Amazon Web Services, Sam Altman

OpenAI competitors:

• Google DeepMind: Known for its advancements in machine learning and reinforcement learning, DeepMind has made significant contributions to AI, including the development of AlphaGo and AlphaFold, which have applications in gaming and bioinformatics, respectively.

• Microsoft AI: Leveraging its Azure platform, Microsoft AI provides a suite of tools for developers and has been integrating AI capabilities across its products. The company has invested heavily in AI research and development.

• Anthropic: Founded by former OpenAI employees, Anthropic focuses on AI safety and research, aiming to create advanced AI systems. The company is actively raising capital to enhance its capabilities in the AI sector.

• IBM Watsonx AI: This platform emphasizes generative AI and large language models, providing sophisticated tools for business applications. IBM's extensive experience in AI positions Watsonx as a strong competitor.

• Mistral AI: Specializing in open-source AI models, Mistral aims to provide adaptable solutions for various applications in the tech sector.

• xAI: Founded by Elon Musk, xAI focuses on developing language learning models and aims to create advanced conversational agents that assist users in various tasks.

• Meta AI: Aiming to innovate in machine learning algorithms, Meta is developing technologies that compete directly with OpenAI's offerings.

• Cohere: This company is known for its work on natural language processing and aims to provide businesses with powerful AI tools.

• Hugging Face: Recognized for its contributions to open-source machine learning models, Hugging Face is a key player in the AI community, promoting collaboration and innovation.

These competitors represent a mix of established tech giants and emerging startups, each contributing unique strengths and innovations to the rapidly evolving field of artificial intelligence.