Cathy Wood doubles in OpenAI with $250 million investment
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Cathy Wood's Arch Ventures invested $250 million in OpenAI's $6.6 billion funding round. OpenAI is now valued at $157 billion after a major funding round.
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Cathy Wood's Arch Venture Fund has committed to investing at least $250 million in OpenAI's latest funding round, according to a Business Insider report. Ark's second investment in ChatGPT developer reinforces OpenAI's belief in artificial intelligence capabilities.
The $250 million investment brought the round to $6.6 billion, raising the company's valuation to $157 billion, as disclosed in OpenAI's announcement earlier today. This latest round puts OpenAI as one of the top three venture-backed startups in the world, along with Elon Musk's SpaceX and ByteDance, TikTok's parent company.
Arc Venture's recent $250 million investment in OpenAI reinforces Cathy Wood's strong belief in the future of artificial intelligence, aligning with Arc Venture Fund's continued focus on disruptive technologies. Along with AI, the fund highlights Arc's commitment to shaping the future of technology innovation by supporting companies such as SpaceX, Databricks, FigureAI, Anthropic and xAI.
OpenAI's $6.6 billion funding round announced earlier today was led by Thrive Capital and included major investors such as Microsoft, Nvidia, Khosla Ventures and Altimeter Capital. International players such as Softbank Group and Abu Dhabi-based MGX also participated, underscoring the widespread belief that AI will play a central role in the future of technology.
OpenAI plans to use the funds to accelerate AI research and expand its computing capabilities to meet the growing demand for generative AI technologies.
“AI is already personalizing education, accelerating healthcare discoveries and driving productivity,” OpenAI chief financial officer Sarah Freer said in a statement. “And this is just the beginning.”
With OpenAI now valued at $157 billion, the company's position as a leader in the AI space is more secure than ever. However, it faces stiff competition from tech giants like Google and Amazon, as well as new startups founded by former OpenAI employees. The increasing amount of capital flowing into AI research suggests that the race to develop the most advanced generative AI models is far from over.
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