OpenAI CFO: $157 billion valuation, the largest financing in history, why?

Author: Li Xiaoyin

Source: Hard AI

OpenAI recently announced that it has completed a new round of financing, totaling up to $10 billion.

Specifically, in this round of financing, equity financing reached $6.6 billion, while an additional $4 billion was raised through revolving credit facilities, bringing the company's total liquidity in this round of financing to $10 billion, making it one of the largest private financing rounds in Silicon Valley history.

Sarah Friar, Chief Financial Officer (CFO) of OpenAI, responded in a recent interview that this funding will provide the company with greater flexibility to meet changing capital needs in the future.

She emphasized that the $4 billion revolving credit facility has not been drawn down yet, and the company will use the raised funds to continue investing in business development, especially in the development and promotion of artificial intelligence products.

Friar also mentioned that investors' confidence in OpenAI comes from the company's three major strengths: vision, focus, and scale.

She stated that OpenAI's leading position in the AI field, along with its focus on native AI products, are key factors attracting investors. In terms of scale, the company's weekly active user base has reached 250 million, with an increase of 50 million in just the past month.

With the surge in user numbers, OpenAI's valuation has doubled, exceeding $150 billion. Friar stated that this valuation growth is supported by the company's financial growth, thanks to investors' optimism about the realization of the company's business model and revenue growth.

"Investors see the company starting to realize through the business model, which is why they invest at a valuation of $157 billion. I think this is where their excitement lies."

Regarding partners, Friar specifically mentioned the importance of companies like NVIDIA and Microsoft. She said, "These companies and OpenAI have a 'generational' partnership and are expected to jointly shape the entire ecosystem."

"In fact, I would say that from here on, our relationship with Microsoft is a generational one... The work they have done in GPUs and text responses makes everything possible."

"It's not just these two companies, a broader ecosystem is forming. I think this is also the key to the financing we are currently undergoing and our continued growth, as we are shaping the entire ecosystem."