This is a monthly feature that runs down the month’s top 10 funding rounds in the U.S. Check out September’s biggest rounds here .
OpenAI led the way last month and it really wasn’t even close. However, there were lots of other big raises — as a startup had to raise more than $200 million to make October’s list as investors were very willing to open their checkbooks for megadeals.
1. OpenAI , $6.6B, artificial intelligence: OpenAI announced its long-awaited raise of $6.6 billion at a post-money valuation of $157 billion led by Thrive Capital . The new round makes the ChatGPT creator one of the most valuable private companies in the world and also included investment from the likes of Altimeter Capital , Fidelity , Khosla Ventures , Microsoft , Nvidia , SoftBank and Abu Dhabi-based MGX. It also was reported SoftBank’s Vision Fund would invest $500 million in the round. The new round comes just as the company is facing myriad issues, including an exodus of higher-up employees and a restructuring change to switch it from a nonprofit to a for-profit benefit corporation and to give co-founder Sam Altman equity in the company. The funding structure seems to take those factors into account, as it came in the form of convertible notes and reportedly allows for investors to ask for their money back if the change is not completed within two years and removes the cap on returns for investors. The new round is bigger than the $6 billion round Elon Musk ’s generative AI startup, xAI , officially announced in May, which up to this point was the largest round raised this year.
2. Pacific Fusion , $900M, energy: Another huge AI-related round. Pacific Fusion, a startup attempting to create a nuclear fusion-based energy source, raised more than $900 million in a Series A led by General Catalyst . The funding does depend on the company hitting certain milestones — which were not spelled out. The round further illustrates investors’ appetite for energy sources that can meet AI’s immense power needs.
3. (tied) Crusoe Energy Systems , $500M, […]
The 10 Biggest Rounds Of October: OpenAI’s Massive Deal Dwarfs All Others
