£5bn funds will allow OpenAI to 'double down on leadership in frontier AI research'

OpenAI, the creator of ChatGPT, has secured a staggering £5bn ($6.6bn) in its latest funding round, setting a new record for the largest deal of its kind and valuing the company at £118bn ($157bn).

The funding catapults OpenAI into the ranks of the world's most valuable start-ups, surpassing the $6bn raised by Elon Musk’s xAI earlier this year. The funding round was spearheaded by investment firm Thrive Capital and saw participation from tech giants Microsoft and Nvidia, among others.

However, Apple reportedly sat out despite being involved in discussions. The news comes amid a wave of excitement surrounding generative AI, initially ignited by the launch of ChatGPT in late 2022. Since then, all major tech players have entered the space in some capacity, recognising the technology as the next big innovation in the sector.

OpenAI stated that the fresh funds will enable it to "double down on our leadership in frontier AI research", ramp up its compute capacity and continue developing new tools to assist users in problem-solving. "We aim to make advanced intelligence a widely accessible resource," the company expressed in a blog post.

"We’re grateful to our investors for their trust in us, and we look forward to working with our partners, developers, and the broader community to shape an AI-powered ecosystem and future that benefits everyone. By collaborating with key partners, including the US and allied governments, we can unlock this technology’s full potential."

Sam Altman, the Chief Executive of OpenAI, is reportedly restructuring the company from its original non-profit model, a move that has drawn criticism from various quarters, including former employees. Some critics have expressed concerns that the shift to a for-profit model could compromise safety.

Elon Musk, who heads rival start-up xAI and was also a co-founder of OpenAI, has accused the company of straying from its founding mission of being an open-source firm developing AI for the benefit of humanity. The company has been embroiled in corporate drama over the past year, with several key executives and other staff departing since Mr Altman's brief removal as chief executive last November.