Microsoft-backed (MSFT) AI firm OpenAI has raised $8.3 billion in fresh funding at a $300 billion valuation, according to The New York Times. Indeed, the raise is part of the company’s bigger $40 billion fundraising goal for 2025 and came months earlier than expected. It is worth noting that OpenAI had already secured $2.5 billion in March and initially planned to add another $7.5 billion later this year, but accelerated its timeline as investor demand surged due to the company’s fast growth.
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Indeed, The Information reported on Thursday that OpenAI reached $12 billion in annualized revenue and surpassed 700 million weekly active ChatGPT users. Meanwhile, the Times suggested that the number may be closer to $13 billion and could hit $20 billion by the end of the year. It also helps that the Trump administration’s AI Action Plan and ongoing talks with Microsoft could push OpenAI toward its goal of becoming a fully for-profit company.
As a result, the latest round was led by Dragoneer Investment Group, which invested $2.8 billion in one of its most significant bets to date. Other new backers included Blackstone (BX), TPG (TPG), and T. Rowe Price (TROW), alongside well-known firms like Andreessen Horowitz, Founders Fund, Sequoia Capital, and Fidelity. Interestingly, though, some early investors were reportedly frustrated because they received smaller allocations in this round, as OpenAI prioritized bringing in strategic partners to support its next growth phase.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the last three months. Furthermore, the average MSFT price target of $614.72 per share implies 17.3% upside potential.
