OpenAI is in preliminary discussions to raise a $100 billion funding round, sources familiar with the matter revealed to Bloomberg News.
If successful, this would make OpenAI one of the most valuable startups globally.
OpenAI is actively engaging potential investors in the discussions, but they are still finalizing details such as terms, valuation, and timelines.
Should the funding round proceed, OpenAI would become the second-most valuable US startup, trailing only SpaceX, based on CBInsights data. OpenAI has declined to comment on the matter.
In early January, OpenAI is set to conclude a stock purchase offer, allowing employees to sell their shares at an estimated valuation of $86 billion.
Thrive Capital leads the funding round, with sources indicating high investor interest exceeding the available shares.
OpenAI’s rapid growth stems from the success of its AI technology, particularly ChatGPT, a chatbot that generates text in response to requests.
The company has gained popularity in Silicon Valley, securing $13 billion in funding from Microsoft.
This success has sparked renewed enthusiasm for AI and significantly transformed the technology industry.
Other tech giants like Amazon and Alphabet have invested billions in Anthropic, a rival AI company.
Hugging Face, valued at $4.5 billion, received investment leadership from Salesforce. Nvidia has also made multiple AI-related investments this year.
OpenAI and Abu Dhabi-based G42 focused on funding.
Recent discussions between OpenAI and Abu Dhabi-based G42 focused on funding a new chip business.
They explored the potential of raising $8 billion to $10 billion to compete with Nvidia in the AI chip market.
G42, led by Sheikh Tahnoon bin Zayed Al Nahyan, announced a partnership with OpenAI to provide advanced AI solutions in the UAE and regional markets.
However, financial details were not disclosed.
OpenAI faced uncertainty after the abrupt dismissal of CEO Sam Altman, causing some investors to consider divesting.
Altman’s reinstatement and appointment of a new board have refocused OpenAI on rebuilding trust.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error