OpenAI raises $8.3B, bringing valuation to $300B: Report
OpenAI's funding round is led by Dragoneer and comes ahead of schedule as investor interest in generative AI continues to grow.
OpenAI, maker of ChatGPT, has raised $8.3 billion in a new funding round that values the artificial intelligence company at $300 billion, according to a report by The New York Times. The oversubscribed round is part of OpenAI’s broader plan to raise $40 billion this year.
The latest fundraise came ahead of schedule. OpenAI had initially raised $2.5 billion in March and was expected to raise an additional $7.5 billion by the end of the year. However, the company completed this portion of the round earlier than planned, as demand from investors increased.
Dragoneer Investment Group led the round with a $2.8 billion investment, according to NYT. Other participants include Blackstone, TPG, T. Rowe Price, Altimeter Capital, Andreessen Horowitz, Coatue Management, D1 Capital Partners, Fidelity Management, Founders Fund, Sequoia Capital, Tiger Global, and Thrive Capital.
Some existing investors reportedly received smaller allocations than expected, as OpenAI made room for new strategic backers.
The fundraising comes as OpenAI reports strong growth in both revenue and user engagement. The company has reached an annualised revenue of around $12 billion, according to The Information, while the Times puts the number closer to $13 billion. ChatGPT, OpenAI’s flagship product, now has over 700 million weekly active users.
OpenAI’s projections suggest it could reach $20 billion in annualised revenue by the end of the year. The company has also increased its estimated cash burn for 2025 to $8 billion, up from an earlier projection of $7 billion.
The firm is currently in discussions with investors for the second leg of its $40 billion fundraising effort. According to The Information, commitments of approximately $7.5 billion have already been secured, including significant investments from existing shareholders such as Sequoia Capital and Tiger Global. SoftBank, which began investing in OpenAI in late 2024, has agreed to commit a total of $32 billion.
OpenAI remains closely aligned with Microsoft, which has integrated the company’s technology into its products. The startup is also reportedly engaged in discussions around future commercial and strategic partnerships, including possible updates to its existing relationship with Microsoft.
Edited by Kanishk Singh