OpenAI’s User Targets; General Catalyst’s Bigger Seed Bet

An earlier version of this column incorrectly stated Thrive Capital has used the option of investing in the latest OpenAI round at the last round’s valuation. While it has that option, Thrive invested in the round with the same terms as the other investors, said a person close to the fundraise. 

An edited version of the rest of the column follows. 

In a blockbuster year so far for artificial intelligence deals, no startup has come close to OpenAI, which just raised $10 billion in a financing valuing the ChatGPT maker at $260 billion before the investment. SoftBank has led the funding, which include checks from repeat investor Thrive Capital as well as Altimeter Capital Management and Coatue Management. 

These investors’ interest can be explained by OpenAI’s recent performance. The ChatGPT maker has told investors it generated $3.7 billion in revenue last year, in line with projections that Cory reported in October, up from $1 billion in 2023. For those of you keeping score, $2.8 billion of that figure came from ChatGPT subscriptions, with the rest coming from its application programming interface business.