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OpenAI Raises $300M at $27B-$29B Valuation: A New Chapter of Success for the Creators of ChatGPT

OpenAI, the mastermind behind the widely popular conversational AI model ChatGPT, has attracted new investors and raised eyebrows in the tech world. VC firms like Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global have contributed over $300 million to the startup at a stunning valuation of $27 billion to $29 billion. This funding round is separate from Microsoft's earlier investment, which is believed to be around $10 billion.

While Microsoft's investment focuses on the strategic integration of OpenAI's technology across its business, the latest VC backing provides financial support for OpenAI's endeavors. With external investors now owning over 30% of OpenAI, the company's future looks brighter than ever.

The skyrocketing valuation comes as no surprise, considering the viral success of ChatGPT. Boasting over 1 billion visitors in February alone, according to SimilarWeb, ChatGPT has garnered significant attention and interest in the AI landscape. Despite controversies around the AI's potential for manipulation or misinformation, OpenAI continues to evolve and improve its products.

The startup introduced a paid version of ChatGPT called ChatGPT Plus in February, followed by an upgrade to the multimodal LLM GPT-4 in March. OpenAI's efforts have spurred other tech giants like Google and Meta to accelerate their own generative AI endeavors with products like Bard and LLaMA, respectively.

OpenAI's dedication to the AI space since its inception in 2015 has given it a competitive edge. As CEO Sam Altman stated at an AI conference, the company's success can be attributed to its long-term commitment and attention to detail. In addition to ChatGPT, OpenAI also boasts AI-based image-generation tool Dall-E and speech recognition model Whisper AI.

Microsoft has already integrated OpenAI's APIs with its Azure infrastructure and announced a GPT-4 integration to enhance Bing's capabilities. With this latest influx of funding and an ever-growing ecosystem around its technology, OpenAI appears to be the closest thing to a winner in the rapidly evolving AI landscape.