Home Finance OpenAI’s CFO says in a letter that the financing round should be completed next week

OpenAI’s CFO says in a letter that the financing round should be completed next week

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OpenAI’s Sora AI tool allows users to create AI-generated videos from text-based input.

Cost photo | Nurfoto | Getty Images

OpenAI CFO Sarah Friar wants to reassure investors that the richly valued artificial intelligence startup is still in a strong position and is poised to close a major funding round soon, despite losing top talent this week.

In an email to OpenAI investors seen by CNBC, Friar addressed the departure of Chief Technology Officer Mira Murati, who announced her departure on Wednesday. Later that day, Sam Altman said two top researchers, Bob McGrew and Barret Zoph, were also leaving.

“I wanted to reach out personally following the news of Mira’s departure from OpenAI,” Friar wrote in the letter, which was viewed by CNBC. “While leadership changes are never easy, I want to make sure you have the full context.”

Friar added, “We are incredibly proud of everything she has helped build,” and said the San Francisco-based company still has a “talented leadership bench” to compete.

OpenAI, which is supported by Microsoft and recently entered into a partnership with Apple on its AI for iPhones, is in the midst of closing a $6.5 billion funding round that should value the company at about $150 billion, according to sources familiar with the matter. Thrive Capital is leading the round and plans to invest $1 billion, according to sources.

Friar said in the email that the funding round was oversubscribed and would end next week. She said the team plans to host a series of investor calls to introduce the group to key leaders from product and research teams.

“Collectively, we remain focused on making AI available to everyone and building sustainable revenue models that fuel our operations and deliver value to our investors and employees,” Friar wrote. The company is “excited to have you with us as we enter our next chapter,” she wrote.

OpenAI declined to comment on the email.

Murati’s departure comes after six and a half years with the company. She briefly served as interim CEO last year after the board of directors abruptly fired Altman. When Altman was quickly reinstated, Murati returned to the CTO role.

Sarah Friar has been appointed CFO of OpenAI

Anjali Sundaram | CNBC

The company was already dealing with the loss of key executives. Co-founder John Schulman and security chief Jan Leike left to join rival Anthropic. Co-founder Ilya Sutskever left to start another AI company, while another founder, Greg Brockman, is on leave.

Friar said Mark Chen will serve as senior vice president of research, and leaders like Kevin Weil, who joined Metaand Srinivas Narayanan are “the right people to continue pushing the boundaries of innovation.”

Friar was previously CEO of Next doorand before that CFO Blockformerly Square.

Also on Thursday, Altman denied at an all-hands meeting that there are plans to acquire a “gigantic equity stake” in the company, calling reports of such a development “simply untrue,” according to a person familiar with the company fed up. presence.

Altman and Friar both said during the meeting, which was held via video, that investors have expressed concerns that Altman would not have stock in the company he co-founded nearly nine years ago, said the person, who asked not to be involved name to be mentioned because the meeting took place. only for employees.

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