T. Rowe Price has joined prominent investors like Blackstone and Fidelity in OpenAI’s latest $8.3 billion fundraising round, elevating the company’s valuation to $300 billion. This investment, part of a larger $40 billion funding initiative, is led by Dragoneer Investment Group, demonstrating significant demand for generative AI. OpenAI is transitioning from a hybrid nonprofit to a traditional for-profit model, crucial for securing full capital from SoftBank and preparing for an IPO, with Microsoft potentially acquiring up to one-third of OpenAI’s equity.
OpenAI’s annual recurring revenue is projected at $12 to $13 billion, with ChatGPT users reaching between 500 million to 700 million. This funding round has ignited investor confidence in AI, indicating it’s becoming a mainstream asset. T. Rowe Price’s involvement marks a strategic shift toward solid AI infrastructure investments, essential for OpenAI’s growth and alignment with institutional investment strategies.
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