OpenAI raised a huge funding round and negotiated an equally impressive credit line
OpenAI has secured $6.6 billion in new funding at a $157 billion valuation, plus a $4 billion credit facility from major banks, which the company claims will give it "the flexibility to invest in new initiatives and operate with full agility as [it] scale[s]."
Earlier this week, OpenAI confirmed it had raised $6.6 billion "to scale the benefits of AI". The round placed OpenAI's post-money valuation at $157 billion, placing the company next to Uber. The round was led by existing investor Thrive Capital, which reportedly invested $1.3 billion and was given an exclusive opportunity to invest up to another billion at the same valuation during 2025 at the latest.
Microsoft, Nvidia, SoftBank, Khosla Ventures, Altimeter Capital, Fidelity, and MGX also participated in the fundraising. Additional reports state that Microsoft invested just shy of a billion, SoftBank contributed $500,000 and NVIDIA pledged $100,000. Barely a day after OpenAI confirmed the news of its funding round, the company also shared it negotiated a $4 billion revolving credit facility with JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC.
Expectedly, OpenAI will destine the raised funds to cover its operational costs. Even with the reported 250 million users worldwide, the company has long been said to be on track to lose $5 billion this year. Although OpenAI's annualized revenue had been set at around $3.5 billion earlier this year, the company is also said to have already blown through a massive $7 billion in model training expenses and an additional $1.5 billion in staff and operations.
OpenAI has claimed it will reach $100 billion in revenue by 2029, roughly equivalent to Target's or Nestlé's current yearly targets. The goal is ambitious and has already been criticized as unrealistic, given the necessary conditions for it to happen (a 90%+ annual growth rate for five consecutive years), its low rate of paying customers, and the increasing competition from both closed-source vendors like Anthropic, and more open entities like Meta and Mistral.
OpenAI does not seem keen on making any sudden moves, but speculation already bubbles around the subject of the company's conversion into a for-profit entity, and its plans to slowly increase its prices until its Pro subscription more than doubles, costing $44 (compared to the current $20).
