Microsoft-Backed OpenAI Raises $175 Million For Startup Investment Fund: Report

OpenAI, the creator of viral AI chatbot ChatGPT has closed a $175 million funding fund centered on empowering different AI startups, with backing from Microsoft and different buyers, as per a submitting with the Securities and Trade Fee (SEC), says a report by information company Bloomberg.

The corporate had beforehand mentioned it will put $100 million into the startup fund.

Nonetheless, the SEC filings present that the fund, known as OpenAI Startup Fund I, is larger than initially anticipated and is 75 per cent larger than the unique plan, the report talked about. Representatives for OpenAI didn’t instantly reply to the report, the Bloomberg report added.

The fund, managed by OpenAI CEO Altman and COO Brad Lightcap, raised cash from 14 buyers, in keeping with the SEC submitting. OpenAI has already been investing in AI startups for a while. In current months, ChatGPT and GPT-4 have grow to be a rage globally.

OpenAI not too long ago closed a greater than $300 million share sale at a valuation between $27-$29 billion, in keeping with the reviews. Altman has “privately steered OpenAI could attempt to increase as a lot as $100 billion within the coming years to realize its purpose of creating synthetic normal intelligence (AGI) that’s superior sufficient to enhance its personal capabilities”.

OpenAI in February this yr launched the brand new subscription plan, ChatGPT Plus, which is out there for $20 a month.

In the meantime, a brand new report has claimed that solely round $15 million of donations given to OpenAI can really be traced again to the Tesla CEO Elon Musk who has additionally lowered his declare of $100 million donation to the corporate, current media reviews say.

The Tesla and SpaceX CEO all the time claimed he donated $100 million to the ChatGPT developer, which is now backed by Microsoft. Again in 2018, Musk tried to take management of OpenAI, however Sam Altman and OpenAI’s different founders rejected his proposal. The outgoing Twitter CEO, in flip, walked away from OpenAI and reneged on a $1 billion deliberate donation, some reviews recommend.

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