OpenAI Secures Another $6.6 Billion in Funding, Takes a Shot at Former Colleague Ilya

OpenAI raises $6.6 billion, doubling its valuation to $157 billion in 9 months, while sparking controversy over restrictive investment conditions.

OpenAI's valuation surged by over $70 billion in just 9 months.

The much-rumored OpenAI funding finally settled.

On October 2nd, OpenAI announced a massive $6.6 billion raise, bringing its post-money valuation to $157 billion—doubling in 9 months.

Who made such a bold move?

Sources reveal that OpenAI’s longtime backer, Thrive Capital, led the round, with participation from Microsoft, Nvidia, SoftBank, and others.

However, the funding sparked controversy.

One key issue was the unusual conditions attached.

OpenAI asked investors not to fund its competitors. This includes Anthropic, xAI, and even Safe Superintelligence (SSI), a new company by OpenAI co-founder Ilya Sutskever.

Elon Musk was furious, calling it "evil" on X.

Another issue was OpenAI's shift in structure.

Currently, OpenAI's for-profit arm is governed by a nonprofit. This limits investor returns. But reports suggest Altman hinted that OpenAI may drop nonprofit governance in the coming months.

According to Bloomberg, if OpenAI doesn't shift to a for-profit structure within two years, new investors may get their money back.

Critics have also mocked the situation. Some questioned Altman's stock ownership, while others sarcastically doubted the shift from nonprofit to profit "for the benefit of humanity."

The funding also unearthed internal power struggles.