Nandini Roy Choudhury, writer
Brief news
- Sarah Friar, OpenAI’s CFO, reassured investors about the company’s strong position despite recent executive departures, including CTO Mira Murati.
- OpenAI is finalizing a $6.5 billion funding round, expected to value the company at $150 billion, with Thrive Capital as a key investor.
- Friar emphasized the company’s commitment to accessible AI and sustainable revenue models while announcing new leadership roles to maintain innovation.
Detailed news
Sarah Friar, the Chief Financial Officer of OpenAI, is eager to reassure investors that the artificial intelligence startup, which is highly valued, is still in a strong position and is on the brink of closing a significant funding round. This is despite the fact that the company lost some of its most talented employees this week.
Friar addressed the departure of Chief Technology Officer Mira Murati in an email to OpenAI’s investors that was viewed by CNBC. Murati announced her departure on Wednesday. Two of the most prominent research executives, Bob McGrew and Barret Zoph, were also departing later that day, according to Sam Altman.
Friar wrote in the letter, which was witnessed by CNBC, “I wanted to personally reach out following the news of Mira’s departure from OpenAI.” “I want to guarantee that you have the complete context, despite the fact that leadership changes are never easy.”
Friar also stated that the San Francisco-based company has a “talented leadership bench” that is capable of competing, and that they are “incredibly proud of everything she’s helped build.”
According to sources with knowledge of the matter, OpenAI, which has recently collaborated with Apple on its AI for iPhones and is sponsored by Microsoft, is in the process of finalizing a $6.5 billion funding round. This transaction is expected to place the company at a valuation of approximately $150 billion. According to sources, Thrive Capital is the main investor in the round and intends to allocate $1 billion.
Friar stated in the email that the funding round was oversubscribed and would conclude by the end of the upcoming week. She stated that the team intends to conduct a series of calls with investors to acquaint the group with key executives from the product and research teams.
Friar stated, “We are collectively committed to ensuring that AI is accessible to all and that we develop sustainable revenue models that support our operations and provide value to our investors and employees.” She wrote that the organization is “thrilled to have you as a part of our next chapter.”
OpenAI declined to provide a response to the communication.
Murati’s departure occurs after a tenure of six and a half years at the organization. After Altman was unexpectedly terminated by the board of directors last year, she briefly assumed the role of interim CEO. Murati resumed his position as CTO upon Altman’s prompt reinstatement.
The company was already grappling with the departure of critical executives. John Schulman, the co-founder, and Jan Leike, the safety director, have departed to join Rival Anthropic. Ilya Sutskever, a co-founder, has departed to establish a new AI company, while Greg Brockman, another founder, is currently on leave of absence.
Friar stated that Mark Chen will assume the position of senior vice president of research, and that Kevin Weil, who recently joined from Meta, and Srinivas Narayanan are the “appropriate individuals to continue to push the boundaries of innovation.”
Friar was previously the CEO of Nextdoor and the CFO of Block, which was formerly known as Square.
Altman denied that there are plans for him to acquire a “giant equity stake” in the company during an all-hands meeting on Thursday. According to an individual who was present, reports of such a development are “just not true.”
According to the individual who requested anonymity due to the fact that the meeting was exclusively for employees, Altman and Friar both expressed concern that investors have expressed apprehension regarding Altman’s lack of equity in the company he co-founded nearly nine years ago.
Source : CNBC News
