Artificial intelligence is the hottest investment right now and one of the leading players in the space has just secured new investment to almost double its valuation.
OpenAI’s backers in its latest round of funding include Josh Kushner’s venture capital firm Thrive Capital with $1.3 billion, Nvidia, Fidelity Management & Research, and Khosla Ventures. There was also a further $750 million from OpenAI’s largest corporate investor Microsoft which has previously invested $13 billion.
The new round of fundraising, totaling $6.6 billion, boosts OpenAI’s market valuation to $157 billion, almost double the previous valuation, and is one of the largest-ever private investments, just short of the $7 billion invested in Tesla in a round led by Elon Musk in 2018 who had tweeted about taking the firm private.
OpenAI says the funding will help to “accelerate progress on our mission” to scale the benefits of AI and “continue building tools that help people solve hard problems.”
“AI is already personalizing learning, accelerating health care breakthroughs and driving productivity,” OpenAI Chief Financial Officer Sarah Friar told Bloomberg. “And this is just the start.”
The boom in AI has been a key part of the strong equities market in recent times and is also boosting some more traditional industries such as energy. The high power demand from AI platforms has prompted advisors to consider a ‘power play’ and using investment in power generators and others as another way to reap rewards from the AI revolution.
Despite its partnership with the AI firm, Bloomberg sources familiar with the fundraising deal say that Apple is not one of the investors, despite having previously been in talks to do so.
OpenAI has seen some turbulence in the last year, including the firing and re-hiring of its chief executive officer Sam Altman. Altman is also at the center of a potential pivot of the firm from its non-profit structure in a move that could hand its chief an equity stake worth more than $10 billion.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
