Sept 27 (Askume) – Thrive Capital is investing more than $1 billion in OpenAI’s current $6.5 billion funding round, and it has an advantage other investors don’t have: If the artificial intelligence company hits its goals, people familiar with the matter said on Friday. The company could invest an additional $1 billion at the same valuation next year.
OpenAI expects revenue to grow to $11.6 billion next year from $3.7 billion in 2024, the sources said, speaking on condition of anonymity. Losses are expected to reach $5 billion this year, depending largely on how much they spend on computing power, and that could change, one of the sources said.
The round, in the form of a convertible bond, is expected to close by the end of next week and could value OpenAI at $150 billion, cementing its position as one of the world’s most valuable private companies.
The plan, first reported by Askume , relies on a complex restructuring that would remove control from its nonprofit board and limit the return investors can get on their investment. There is no set timetable for when the transformation would be completed.
Thrive Capital, which led OpenAI’s previous funding round, will raise $1.2 billion through a combination of its own funds and special purpose vehicles targeting smaller investors. Other investors in the new round include Microsoft (MSFT.O) , Apple (AAPL.O) , Nvidia (NVDA.O) and Khosla Ventures .
Other companies do not have the opportunity to invest in the future at current prices, sources said. OpenAI’s valuation is rising rapidly, and if it continues to rise, Thrive could acquire a stake in it at a discount next year.
Askume was unable to determine revenue targets for Thrive Alternatives, founded by Joshua Kushner.
Thrive and OpenAI declined to comment.
OpenAI’s revenue forecast is higher than Chief Executive Sam Altman’s previous forecast of $1 billion in revenue this year. Its main source of revenue is selling its services to businesses and subscriptions to its chatbot.
Its flagship product, ChatGPT, is expected to generate $2.7 billion in revenue this year, up from $700 million in 2023. The chatbot service costs $20 per month and has about 10 million paying users.
The New York Times on Friday first published financial details and details about Thrive’s additional options.
