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OpenAI goes (partly) open?

OpenAI goes (partly) open?

💰 OpenAI breaks funding history

Martin Crowley, Liam Lawson & Amanda Greenwood
April 01, 2025

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Tuesday’s AI Report

• 1. 🔓 OpenAI goes (partly) open?
• 2. ⚡ In partnership with Incogni
• 3. 💰 OpenAI breaks funding history
• 4. 🎬 Runway release best-yet video-generator
• 5. 🎯 In partnership with ChatNode
• 6. ⚙️ Trending AI Tools
• 7. 🏗️ Practical AI Applications
• 8. 📑 Recommended Resources

Read Time: 5 minutes

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OpenAI goes (partly) open?

🚨 Our Report

After dropping hints for months, OpenAI has finally announced it’s planning to “release a powerful new open-weight language model (which will be the first since GPT-2) with reasoning capabilities” similar to its o3-mini reasoning model, over “the coming months.”

🔓 Key Points

OpenAI is keen to collaborate with “developers, researchers, and the broader community” to find out what they’d like to see in an open-weight model, and what open models they’ve previously used.
It also plans to gather feedback during developer events where it will demo prototypes, with the first taking place in San Fransisco, in just a matter of weeks, followed by ones in Europe and Asia-Pacific regions.
It’s worth noting that OpenAI’s new “open-weight” model isn’t the same as an open-source one—true to OpenAI’s previous form, developers will still be unable to see the source code or how the model was trained.

🔐 Relevance

OpenAI is likely doing this as it faces increasing competition and pressure from its rivals—in particular, Meta (Zuckerberg has repeatedly said that open-source is the way forward for AI and has successfully invested in Llama, its family of open AI models, seeing over 1B downloads) and DeepSeek (which has attracted a massive user base with its open-weight models)—as they’re making their models available to the wider AI community for customization, experimentation, and commercialization, and if they don’t do something similar, they risk losing market share.

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🚨 Our Report

OpenAI has raised $40B—the largest funding round in history, for a private tech company—receiving a $300B valuation.

🔓 Key Points

OpenAI will get $10B up front, with Softbank contributing $7.5B with an “investor syndicate” (which includes early backers Microsoft, Thrive, Altimeter, and Coatue) making up the remaining $2.5B.
The other $30B will arrive by the end of the year, but OpenAI has to have officially transitioned into a for-profit company by then, otherwise, they stand to forfeit up to a quarter of the deal.
CEO, Sam Altman, established that the funding would allow it to “push the frontiers of AI research even further,” and “deliver increasingly powerful tools for the 500M people who use ChatGPT every week.”

🔐 Relevance

The funding comes just months after OpenAI confirmed its involvement with Project Stargate—a joint venture with Softbank, Oracle, and MGX, to build data centers across the US over the next four years—and reportedly, around $18B of the funding will go towards that.

Upcoming AI video-generator start-up, Runway, has released a new AI-powered video generator (Gen-4) which is its ‘highest fidelity’ model yet, meaning it can create extremely realistic, high-quality videos.
According to Runway, Gen-4 can create new images and videos with consistent styles, subjects, and locations across scenes, and “maintain coherent world environments” without fine-tuning or additional training.
However, the start-up is currently facing a lawsuit for training its models on copyrighted material without permission, which may harm its reputation and its attempts to hit $300M annualized revenue this year.

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