OpenAI, the developer of the ChatGBT chatbot, raised $11 billion in new funding, in the initial closing of a funding round that valued the company at approximately $1.25 trillion, amid waning investor appetite for artificial intelligence companies.
Reuters quoted a source it described as knowledgeable as saying that the company had completed the deal, while two investors confirmed that the funds raised so far represent part of its original target of $30 billion, and that the valuation came in below the $1.5 trillion level it had initially sought.
The investors added that SoftBank and MGX participated in the funding round.
The funding comes at a time when investor sentiment towards artificial intelligence companies has declined over the past month, with a reassessment of the valuations that the sector''s top firms can receive.
The agency noted that some investors have valued the planned initial public offering of rival Anthropic at about $1.5 trillion, compared to previous expectations of about $2 trillion.
OpenAI had previously announced, on March 31, the closing of a funding round with capital commitments of $122 billion, at a valuation of $852 billion after accounting for the funding.
The company said at the time that the round was based on investments from its strategic partners Amazon, Nvidia and SoftBank, with Microsoft continuing to participate, along with a wide range of investment institutions, including MGX.
She explained that the funding gives her the resources needed to expand her business, noting that securing computing capabilities supports research, improves products, and reduces the cost of providing AI services on a large scale