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Thrive Capital invests $1.2 billion in OpenAI’s $6.5 billion funding round with option to invest additional $1 billion next year.
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OpenAI projects $11.6 billion revenue in 2025, up from $3.7 billion in 2024, with ChatGPT driving growth.
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Valuation expected to reach $150 billion, making OpenAI one of the world’s most valuable private companies.
Thrive Capital, led by Joshua Kushner, has secured a lucrative investment opportunity in OpenAI’s latest funding round. The venture capital firm is contributing $1.2 billion, with an option to invest an additional $1 billion next year if OpenAI meets a specific revenue target.
OpenAI, the maker of ChatGPT, is projecting significant revenue growth, aiming to reach $11.6 billion in 2025. This surge is primarily driven by the success of ChatGPT, which is expected to generate $2.7 billion in revenue this year. The chatbot has gained immense popularity, with around 10 million paying subscribers.
The funding round, structured as convertible debt, values OpenAI at $150 billion, making it one of the world’s most valuable private companies. However, the valuation hinges on a complex restructuring plan, which would remove control from OpenAI’s non-profit board and eliminate investment return caps.
Thrive Capital’s strategic investment provides a unique advantage, allowing them to potentially increase their stake at a discounted price next year. Other investors, including Microsoft, Apple, and Nvidia, did not receive this option. With OpenAI’s valuation expected to continue rising, Thrive Capital’s investment is poised for significant returns.
