This column reflects on recent developments in the AI sector. For previous updates, check out our earlier posts.
OpenAI has recently been reported to have a staggering valuation of $150 billion, making it one of the most valuable private companies globally. This valuation is part of a funding round that appears to be growing, now estimated at $6.5 billion. Major investors include Tiger Global Management, Khosla Ventures, Microsoft, Nvidia, Apple, and Abu Dhabi-based MGX.
Key takeaways
- OpenAI was reported at a $150 billion valuation in a funding round that had grown to an estimated $6.5 billion.
- Thrive Capital was reported to be leading the round with a $1 billion commitment, having earlier led OpenAI's secondary offering at an $80 billion valuation.
- Thrive, founded by Joshua Kushner, has run for over 15 years with its last three funds totalling $6 billion and exits including Unity, Slack and OpenGov.
- The firm participated in nearly 20 deals that year, including co-leading Wiz's $1 billion round — the largest cybersecurity raise of the year — and Scale AI's $1 billion Series F at a $13.8 billion valuation.
- Other investors named in the OpenAI round included Tiger Global Management, Khosla Ventures, Microsoft, Nvidia, Apple and MGX.
Thrive Capital is notably in the spotlight, reportedly leading this funding round with a commitment of $1 billion. Founded by Joshua Kushner, this New York-based investment firm has been active for over 15 years, with its last three funds totaling $6 billion.
Despite its low profile compared to other venture capital giants, Thrive Capital has achieved numerous successful exits, including Unity, Slack, and OpenGov. As its funds have increased, so has its participation in larger funding rounds.
While Thrive has scaled back its investment pace since 2021, when it was investing in over a dozen startups quarterly, it continues to engage in significant funding rounds. This year alone, the firm has participated in nearly 20 funding deals, including co-leading a $1 billion round for cloud security startup Wiz, which is the largest cybersecurity funding round of the year.
Thrive also participated in Scale AI’s $1 billion Series F round, which valued the data labeling startup at $13.8 billion, and in Formation Bio’s $372 million Series D round. Earlier this year, Thrive led OpenAI’s secondary offering at an $80 billion valuation.
While the new OpenAI deal will require a substantial investment, Thrive is well-positioned to handle it as it continues to pursue significant opportunities.
Recent Developments in AI Valuations:
- AI cloud infrastructure startup CoreWeave is reportedly in discussions to sell existing shares, which could value the company at $23 billion. This marks a significant increase from its previous valuation of $19 billion in May and $7 billion last December.
- Glean, an AI-enhanced work assistant, has also seen its valuation rise dramatically. After raising over $200 million in a Series D round at a $2.2 billion valuation, it recently secured more than $260 million in a Series E funding round, bringing its valuation to $4.6 billion.
Frequently asked questions
What is a secondary offering in this context?
It lets existing shareholders such as employees sell shares rather than the company issuing new ones. Thrive led OpenAI's at an $80 billion valuation, which is how the firm built its position before the larger primary round.
How has Thrive's pace changed?
It has slowed considerably. In 2021 the firm was backing more than a dozen startups a quarter; it now does fewer deals but writes much larger cheques into concentrated positions.
How fast were AI valuations moving?
Very fast. CoreWeave was in talks at $23 billion after $19 billion in May and $7 billion the previous December, and Glean went from a $2.2 billion Series D to a $4.6 billion Series E.
