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TL;DR
- OpenAI is reportedly in talks to raise $6.5 billion at a valuation of $150 billion, a significant increase from its $86 billion valuation earlier this year, cementing its position as one of the most valuable startups worldwide.
- The funding round is expected to be led by Thrive Capital, with potential investments from Microsoft, Apple, and Nvidia, while OpenAI also seeks a $5 billion credit line from banks.
- The financing will support OpenAI’s computing power needs and operational expenses as it continues to develop advanced AI technologies that have captured the attention of consumers and investors alike.
- Despite recent challenges, including the brief ousting of CEO Sam Altman and the departure of key personnel, OpenAI has expanded its workforce and released increasingly sophisticated AI products, driving the rapid shift towards artificial intelligence in the technology industry.
OpenAI, the company behind the popular AI chatbot ChatGPT, is reportedly in advanced talks with investors to raise $6.5 billion in funding at a valuation of $150 billion. According to Bloomberg, citing anonymous sources, this new valuation is a significant increase from the startup’s previous valuation of $86 billion earlier this year.
The funding round is expected to be led by Thrive Capital, a major investor in OpenAI’s previous rounds. Other potential investors include Microsoft, Apple, and Nvidia, all of which are partners with OpenAI in various capacities.
In addition to the equity financing, OpenAI is also reportedly in discussions with banks to secure a $5 billion credit line. However, the terms of these discussions are subject to change, as noted by a person familiar with the matter.
Last month, OpenAI’s CFO, Sarah Friar, stated in an internal memo that the latest financing will be focused on supporting the company’s computing power and operational expenses. The rapid growth and increasing demand for OpenAI’s AI technology have fueled the need for additional funding.
OpenAI has been at the forefront of the AI revolution since the launch of ChatGPT in late 2022, which sparked a global investment frenzy in AI startups. However, the company has also faced challenges, including a brief ousting of CEO Sam Altman in late 2023 and the departure of several key personnel, such as co-founder and chief scientist Ilya Sutskever.
Despite these hurdles, OpenAI has continued to expand its workforce, hiring over 1,000 new employees, and has released increasingly advanced iterations of its AI technologies, including those capable of generating images and videos.
If the funding round is successful, OpenAI’s valuation of $150 billion would cement its position as one of the most valuable startups in the world, second only to ByteDance, the parent company of TikTok.
News Source: TechCrunch
