OpenAI has secured $8.3 billion in new funding from a consortium of private equity and venture capital investors, as the artificial intelligence company continues its rapid growth and eyes an eventual initial public offering.

The fundraising round, which includes contributions from Dragoneer Investment Group, Blackstone, TPG, Fidelity Management, T Rowe Price, Founders Fund, Sequoia Capital, Andreessen Horowitz, Coatue Management, Altimeter Capital, D1 Capital Partners, Tiger Global and Thrive Capital, values OpenAI at $300 billion. Dragoneer alone invested $2.8 billion, marking one of the largest single cheques ever written by a technology fund.

The round, which is part of a broader $40 billion fundraising effort, was completed ahead of schedule and was five times oversubscribed, reflecting the intense interest in the artificial intelligence sector. SoftBank remains the lead backer of the overall $40 billion raise, having already invested $7.5 billion, with further contributions expected by year-end.

OpenAI’s business has accelerated sharply, with annual recurring revenue rising to $13 billion, up from $10 billion in June, and projections suggesting it could exceed $20 billion by the end of the year. Paid business users of ChatGPT have also jumped to five million, up from three million just a few months ago.

The company is reportedly in the midst of complex negotiations with Microsoft, its largest strategic partner, to determine its future corporate structure. Microsoft is expected to take roughly a third of OpenAI’s equity under a new deal, which will also revise terms on revenue sharing and intellectual property access. The outcome of these talks is seen as a prerequisite for OpenAI to simplify its structure and move towards a public listing.

OpenAI is also facing growing competition from rivals such as Anthropic, which is in talks for its own multibillion-dollar funding round, and is engaged in ongoing legal disputes with Elon Musk.

The latest fundraising round underscores investors’ continued confidence in OpenAI’s growth prospects, even as the artificial intelligence landscape becomes more crowded and competitive.

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