Cathie Wood's Ark is doubling down on OpenAI with at least $250 million in its new funding round
Business InsiderSep 22
OpenAI Receives $4B Credit Line
Above: OpenAI co-founder and Chief Executive Officer Sam Altman during the Italian Tech Week 2024 on Sept. 25, 2024 in Turin, Italy. Image copyright: Stefano Guidi/Contributor/Getty Images News via Getty Images
The Facts
ChatGPT-creator OpenAI has received a $4B revolving credit line. This is on top of the $6.6B funding round it closed a day prior, bringing the company's reported liquidity to over $10B.
OpenAI — which counts JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC among its recent investors — has the option for an additional $2B on top of the $4B over three years.
The Spin
Narrative A
OpenAI has gone through some tumultuous times, but it's still growing financially and productivity-wise. Despite losing many of its founding executives and scientists, Altman has been able to push ahead with the development of GPT-5 and achieve another multi-billion-dollar funding round. OpenAI is enduring while balancing creativity with sound business practice.
Narrative B
Any shred of OpenAI's founding philosophy has disappeared. With a profit-driven CEO and board — not to mention the liquidation of its entire nonprofit side — the ChatGPT creator is moving full steam ahead toward one thing — profit. Everyone knows this won't be good for humanity, but neither the government nor the investment class seems to care.