OpenAI has successfully closed a funding round valuing the company at $157 billion, raising $6.6 billion from various investors, including Thrive Capital, Microsoft, and Nvidia.

The funding will enhance OpenAI’s leadership in AI research, increase computing capacity, and support the development of new tools.

OpenAI’s revenue surged to $300 million last month, a 1,700% increase from early 2023, with projected sales of $11.6 billion next year.

However, the company anticipates a $5 billion loss this year due to high costs associated with purchasing Nvidia GPUs, CNBC has reported.

Despite rapid growth and expanding user engagement—250 million weekly active users—OpenAI faces challenges, including the departure of key executives and discussions around a potential restructuring to a for-profit model.

Written by B.C. Begley