OpenAI raises $122 billion in boosted funding round

NEW YORK

OpenAI said that the startup was valued at $852 billion in a freshly closed funding round that raised $122 billion.

The eye-watering level of funding came in higher than originally projected, reflecting the surging costs of computing power and arriving amid lingering questions about whether OpenAI and other AI companies can generate sufficient revenue to cover expenses.

"The capital being deployed today is helping build the infrastructure layer for intelligence itself," OpenAI said in a blog post on March 31.

The ChatGPT-maker said that its revenue rate of $2 billion monthly is quickly growing.

The funding round included a diverse set of partners including Amazon, Microsoft, Nvidia, and Softbank, according to OpenAI.

In an unusual move, some $3 billion was reportedly raised from individual investors.

ChatGPT claims the top position in consumer AI, with more than 900 million weekly active users and some 50 million subscribers.

Use of ChatGPT's online search engine has tripled over the course of a year, according to OpenAI.

The company in February began rolling out advertising for its non-premium users in a bid to bring in more revenue.

OpenAI also announced that it is building a "superapp" that will combine ChatGPT, internet browsing, a Codex coding tool, and agentic capabilities that allow digital assistants to independently tend to tasks.

The massive funding round comes with anticipation that OpenAI is planning to become a publicly traded company this year as competition intesifies in the AI sector.