The publicly traded artificial intelligence companies rose on Tuesday, while OpenAI, the company at the center of the revolution in AI, recently raised $300 billion.
According to a blog post, OpenAI raised $40 billion from SoftBank of Japan, which values the company that makes ChatGPT at $300 billion. It coincides with the release of new, more potent models by the corporation.
“Today we’re announcing new funding-$40 billion at a $300 billion post-money valuation, which enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week,” the business wrote on its website.
According to the assessment, OpenAI is worth more than the $293 billion market capitalization of oil major Chevron (CVX).
According to reports from the New York Times and CNBC, OpenAI predicted last year that it would lose almost $5 billion on $3.7 billion in revenue.
Chevron earned $18 billion on revenue of $203 billion.
It’s true that Chevron is a slow-growing business in a field that most people believe is going to decline. OpenAI is expanding quickly, but not commercially, in a field that may prove to be crucial in the future.
Microsoft (MSFT) owns a minority ownership in OpenAI, which SoftBank (JP:9984) has already committed $2.2 billion in.
Meanwhile, SoftBank announced that it intends to syndicate $10 billion of the investment to other investors. According to SoftBank, the initial $10 billion investment is scheduled for mid-April, with the remaining funds to follow in December. To finance the initial disbursement, it will borrow from banks, including Mizuho (JP:8411).
According to SoftBank, OpenAI is the collaborator that is most likely to develop artificial general intelligence. The Stargate initiative, which was introduced alongside President Donald Trump and intends to construct specialized AI infrastructure, has SoftBank as its principal investor.
There are other AI companies with a higher valuation than OpenAI.
Elon Musk combined two of his businesses, X and xAI, this week, valuing the AI firm at $80 billion. The Claude large language model’s creator, Anthropic, raised funds with a valuation of $61.5 billion.
As of right now, Nvidia, the company that makes the chips that drive AI models, has made a lot of money from the demand for AI, but few other businesses have.
In premarket trading, Nvidia’s stock (NVDA) increased by 1%.
CoreWeave (CRWV), the AI cloud service which cut its valuation ahead of its IPO, rose 2%. Shares of Super Micro Computer (SMCI) increased by 1%.
