The latest funding is different from Microsoft’s mega funding in OpenAI. Credit: Andrew Neel on Unsplash.

OpenAI, the company that created artificial intelligence (AI) chatbot ChatGPT, has reportedly raised roughly $300m in funding at a valuation of between $27bn and $29bn.

Citing documents, TechCrunch reported that the latest investment is coming from venture capitalists including Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, K2 Global and Founders Fund.

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According to a source, the capital infusion is different from Microsoft’s big investment, which was announced earlier this year.

The Windows maker’s investment closed in January and is said to be around $10bn, the publication said, citing a source.

Microsoft’s decision to back OpenAI has a strong strategic component because the tech behemoth is seeking to integrate OpenAI’s technology across several of its business units, but the VCs’ participation is only aimed at providing financial support.

Investors have already signed the term sheets and remitted the funds but OpenAI is yet to countersign them, the report said.

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The source added that more than 30% of OpenAI is now controlled by outside investors.

Based on PitchBook’s data, OpenAI counts Peter Thiel, Sequoia, A16Z, and Tiger Global are existing investors.

Whereas VCs such as K2 Global and Thrive are first-time investors in OpenAI.

The investment comes even as there are controversies around the accuracy, safety, and reliability of the responses generated by generative AI.

Meanwhile, over this past weekend, Italian authorities re-activated ChatGPT in the country, reported Reuters.

The chatbot was temporarily shut down by Italy’s data regulator over a suspected breach of privacy rules.