OpenAI in Early Talks to Raise Funds Valued at Over $100 Billion
This forthcoming deal is designed to enable employees to vend their shares, with the company estimated to reach a valuation of $86 billion upon completion.
OpenAI, a prominent leader in artificial intelligence (AI), is reportedly in preliminary discussions to secure a new round of funding that could potentially value the company at or above an impressive $100 billion, according to Bloomberg News.
Details regarding the terms, precise valuation, and the timing of this prospective funding round have yet to be finalized and are subject to change. In parallel efforts, OpenAI has reportedly engaged in talks concerning funding for a new venture focused on chip technology, partnering with Abu Dhabi-based G42. However, it remains uncertain if this chip venture is directly linked to the broader funding discussions. Reports suggest OpenAI's discussions with G42 involve a funding range between $8 billion to $10 billion.
Separately, OpenAI is poised to conclude a distinct tender offer managed by Thrive Capital in early January. This forthcoming deal is designed to enable employees to vend their shares, with the company estimated to reach a valuation of $86 billion upon completion.
Microsoft, a key investor, previously committed an investment exceeding $10 billion in OpenAI. The collaboration commenced in November 2022 with the launch of ChatGPT, a cutting-edge generative AI technology developed by OpenAI.
ChatGPT, a sophisticated chatbot capable of generating human-like responses based on user inputs, has significantly contributed to OpenAI's surging popularity, marking a remarkable upsurge in the valuation of the San Francisco-headquartered company. Previously, OpenAI executed a $300 million share sale, valuing the organization at $30 billion.
Notably, in late November, OpenAI CEO Sam Altman revealed that Microsoft would assume a non-voting observer role on the company's board, emphasizing the strategic partnership between the two entities.
