Thrive Capital just doubled down on OpenAI with a massive $1 billion investment at a $285 billion valuation, according to sources familiar with the deal. The bet by Joshua Kushner's venture firm comes as a separate transaction from the $100 billion funding round OpenAI is currently finalizing, signaling extraordinary VC confidence in the ChatGPT maker even as AI valuations face scrutiny. The move cements Thrive's position as one of OpenAI's most committed backers and underscores how top-tier investors are racing to secure stakes in leading AI companies.
Thrive Capital has placed a billion-dollar bet on OpenAI, investing at a staggering $285 billion valuation in a deal that sits entirely outside the AI company's much-publicized $100 billion funding round. The investment, confirmed by sources to CNBC, marks one of the largest single VC commitments to an AI company and signals how aggressively top-tier firms are positioning for the AI revolution.
Joshua Kushner's Thrive Capital isn't new to OpenAI - the firm has been a consistent backer through multiple rounds. But this separate billion-dollar injection suggests something different is happening. While OpenAI finalizes what would be one of the largest funding rounds in startup history, Thrive apparently couldn't wait. The firm structured its own deal, willing to pay the premium $285 billion valuation to secure additional exposure now rather than compete in the crowded $100 billion round.
The timing reveals the intense competition among VCs to gain access to AI's top players. OpenAI's valuation has skyrocketed from roughly $80 billion in late 2023 to nearly $300 billion today, driven by ChatGPT's explosive growth and the broader enterprise AI boom. Revenue reportedly hit several billion dollars annually, though the company remains unprofitable due to massive computing costs. Still, investors like Thrive are betting that OpenAI's first-mover advantage in consumer AI and its partnerships with Microsoft position it to dominate the emerging market.
