OpenAI Wants To Raise $6.5 billion At $150 Billion Valuation
The startup is using the funds to support computing needs and operating expenses and plans to offer employees a chance to sell shares later this year.
Artificial intelligence leader OpenAI is in discussions to raise new funding at a valuation of $150 billion, according to a report from Bloomberg News. The company, which gained global recognition with the success of its ChatGPT chatbot, is reportedly aiming to raise $6.5 billion from investors, along with $5 billion in debt through a revolving credit facility.
Artificial intelligence leader OpenAI is in discussions to raise new funding at a valuation of $150 billion, according to a report from Bloomberg News. The company, which gained global recognition with the success of its ChatGPT chatbot, is reportedly aiming to raise $6.5 billion from investors, along with $5 billion in debt through a revolving credit facility.
OpenAI is negotiating a $5 billion debt facility from banks, adding another layer of financial strategy to its growth plans. Thrive Capital is expected to lead this funding round, with participation anticipated from major tech players including Microsoft, Apple, and Nvidia. Microsoft, already a major investor in OpenAI, is set to take part, while discussions with Apple and Nvidia are ongoing.
Despite being a startup with an unconventional nonprofit-capped profit structure, OpenAI has established itself as a leader in the AI sector. The company’s rapid growth comes amid fierce competition from other well-funded firms seeking to capitalize on the AI revolution.
OpenAI is expected to allow its employees to sell shares through a tender offer later this year, providing liquidity for its staff as the company continues to remain private. The tender offer would allow employees to sell a portion of their shares at a fixed price, a common practice for startups delaying an initial public offering (IPO).
