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OpenAI's $150B Valuation

Event

The reported new valuation for OpenAI, contingent on its conversion from a nonprofit to a for-profit entity. This valuation makes it one of the most valuable private companies in the world.

entitydetail.created_at

8/22/2025, 1:21:35 AM

entitydetail.last_updated

8/22/2025, 1:28:32 AM

entitydetail.research_retrieved

8/22/2025, 1:28:32 AM

Summary

OpenAI's valuation has become a major point of discussion, with the company recently completing a $6.6 billion funding round that values it at $157 billion. This significant valuation follows its conversion from a nonprofit to a for-profit entity, a move expected to grant CEO Sam Altman a substantial 7% equity stake worth over $10 billion. However, this restructuring has raised concerns about fairness for early, mission-driven investors like Elon Musk, who reportedly will not receive equity. The high valuation is underpinned by OpenAI's explosive revenue growth, with reports of over $2 billion in annual revenue earlier this year and projections exceeding $10 billion next year. Its technological advancements, particularly the "o1 model" with advanced Chain of Thought reasoning, are seen as crucial for developing powerful AI agents that could disrupt the SaaS industry by rendering traditional systems obsolete and promoting consumption-based pricing. Despite this bullish outlook, OpenAI faces considerable competition from the open-source AI movement, exemplified by Meta's Llama 3.2, and ongoing pressure from tech giants like Google and Microsoft.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Key AI Model

    o1 model

  • Valuation Type

    Pre-money

  • Current Valuation

    $157 billion

  • Funding Round Amount

    $6.6 billion

  • Previous Valuation (2023)

    $29 billion

  • Funding Round Lead Investor

    Thrive Capital

  • CEO Equity Stake (Sam Altman)

    7% equity, worth over $10 billion

  • Previous Valuation (Early 2024)

    $86 billion (from tender offer)

  • Projected Annual Revenue (Next Year)

    Over $10 billion

  • Reported Annual Revenue (Earlier 2024)

    Over $2 billion

Timeline
  • OpenAI launched its ChatGPT chatbot, leading to significant growth for the company. (Source: web_search_results)

    2022-12-01

  • OpenAI was valued at $29 billion. (Source: web_search_results)

    2023-01-01

  • OpenAI was valued at $86 billion from a tender offer earlier in the year. (Source: web_search_results)

    2024-01-01

  • Reports emerged that OpenAI was in talks to raise $6.5 billion from investors at a valuation of $150 billion. (Source: web_search_results)

    2024-09-11

  • OpenAI completed a $6.6 billion fund-raising deal, officially valuing the company at $157 billion. (Source: web_search_results)

    2024-10-02

Wikipedia
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Alibaba Group

Alibaba Group Holding Limited, branded as Alibaba (), is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via Chinese and global marketplaces, as well as local consumer, digital media and entertainment, logistics, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors. On 19 September 2014, Alibaba's American initial public offering (IPO) on the New York Stock Exchange raised US$25 billion, giving the company a market value of US$231 billion and, by far, then the largest IPO in world history. It is one of the top 10 most valuable corporations, and is named the 31st-largest public company in the world on the Forbes Global 2000 2020 list. In January 2018, Alibaba became the second Asian company to break the US$500 billion valuation mark, after its competitor Tencent. As of 2022, Alibaba has the ninth-highest global brand valuation. Alibaba is one of the world's largest retailers and e-commerce companies. In 2020, it was also rated as the fifth-largest artificial intelligence company. It is also one of the biggest venture capital firms and investment corporations in the world, as well as the second largest financial services group behind Visa via its fintech arm Ant Group. The company hosts the largest B2B (Alibaba.com), C2C (Taobao), and B2C (Tmall) marketplaces in the world. It has been expanding into the media industry, with revenues rising by triple percentage points year after year. It also set the record on the 2018 edition of China's Singles' Day, the world's biggest online and offline shopping day.

Web Search Results
  • OpenAI Fundraising Set to Vault Startup's Valuation to $150 Billion

    Updated on September 11, 2024 at 8:58 PM UTC Save Translate OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. The new valuation, a figure that doesn’t include the money being raised, is significantly higher than the $86 billion valuation fromthe company’s tender offer earlier this year, and cements its place as one of the most valuable startups in the world. [...] Published Time: 2024-09-11T19:51:12.547Z OpenAI Targets $150B Valuation With New Major Funding Round - Bloomberg =============== Skip to content Bloomberg the Company & Its Products The Company & its ProductsBloomberg Terminal Demo RequestBloomberg Anywhere Remote Login Bloomberg Anywhere LoginBloomberg Customer Support Customer Support ### Bloomberg [...] Live TV Markets Economics Industries Tech Politics Businessweek Opinion More US Edition []( Subscribe OpenAI: Jony Ive Startup Acquisition New AI Agent Nonprofit Retains Control Musk Fight AI Agent Sam Altman Interview Back Forward Technology Deals OpenAI Fundraising Set to Vault Startup’s Valuation to $150 Billion ===================================================================

  • OpenAI's huge valuation hinges on upending corporate structure

    - OpenAI's new financing round is expected to come in the form of convertible notes, according to sources with direct knowledge of the matter, who said its $150 billion valuation will be contingent on whether the ChatGPT-maker can upend its corporate structure and remove a profit cap for investors.

  • OpenAI Raises $6.6 Billion in Funds at $157 Billion Value

    The huge valuation for OpenAI has transfixed Silicon Valley. “People are shocked at 150 billion bucks,” said Altimeter Chief Executive Officer Brad Gerstner, speaking on stage at the Madrona IA Summit in Seattle on Wednesday. But he also cited reports that the startup expects to generate more than $10 billion in revenue next year – adding that a multiple of 10 times projected revenue isn’t exorbitant for a company about to go public, giving Google and Facebook as comparable examples. The latest [...] deal values OpenAI at more than $150 billion pre-money, before including the dollars raised in this round. [...] (Bloomberg) -- OpenAI has completed a deal to raise $6.6 billion in new funding, giving the artificial intelligence company a $157 billion valuation and bolstering its efforts to build the world’s leading generative AI technology. Most Read from Bloomberg Urban Heat Stress Is Another Disparity in the World’s Most Unequal Nation From Cleveland to Chicago, NFL Teams Dream of Domed Stadiums Singapore Ends 181 Years of Horse Racing to Make Way for Homes

  • OpenAI Completes Deal That Values Company at $157 Billion

    OpenAI said on Wednesday that it had completed a $6.6 billion fund-raising deal that nearly doubles the high-profile company’s valuation from just nine months ago. The new fund-raising round, led by the investment firm Thrive Capital, values OpenAI at $157 billion, according to two people with knowledge of the deal. Microsoft, the chipmaker Nvidia, the tech conglomerate SoftBank, the United Arab Emirates investment firm MGX and others are also putting money into OpenAI. [...] Because of an editing error, an earlier version of this article misstated both the change in valuation of OpenAI and the amount it had previously been valued. The company nearly doubled its previous value, which was $80 billion nine months ago, not $70 billion; it did not more than double its previous value. --- When we learn of a mistake, we acknowledge it with a correction. If you spot an error, please let us know at nytnews@nytimes.com.Learn more [...] Skip to contentSkip to site index Subscribe for $1/weekLog in Tuesday, August 12, 2025 Today’s Paper Subscribe for $1/week Advertisement SKIP ADVERTISEMENT Supported by SKIP ADVERTISEMENT # OpenAI Completes Deal That Values Company at $157 Billion The A.I. start-up’s valuation has risen by more than $70 billion in nine months. Listen to this article · 4:58 min Learn more By Cade Metz Reporting from San Francisco

  • Tiger Global plans to join OpenAI's funding round at more than $150 ...

    Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email Key Points Tiger Global is planning to join OpenAI’s buzzy new funding round that would value the AI startup at more than $150 billion, according to sources familiar with the situation. Thrive Capital is leading the round and plans to invest $1 billion. Tech giants like Microsoft, Nvidia and Apple are reportedly in talks to join as well. In this article [...] Tiger Global is planning to join OpenAI’s buzzy new funding round that would value the artificial intelligence startup at more than $150 billion, according to sources familiar with the situation who spoke anonymously because details of the round have not yet been made public. Thrive Capital is leading the round and plans to invest $1 billion. Microsoft, Nvidia and Apple are reportedly in talks to join as well. [...] Earlier this year, OpenAI was valued at a reported $80 billion, up from $29 billion the prior year. Annualized revenue reportedly surpassed $2 billion earlier this year. Growth took off in late 2022 after the company launched its ChatGPT chatbot. That momentum has continued with new OpenAI products for businesses and an expansion into AI-generated photos and videos. The company has doubled its number of weekly active users from late last year to 200 million, according to OpenAI.