OpenAI Sets Eye on $6.5 Billion at a $150 Billion Pre-Money Valuation
OpenAI, a leader in artificial intelligence, is reportedly in talks to raise $150 billion in funding, according to a story published by Bloomberg News on Wednesday.
The new valuation is vastly more than any other AI startup operating today and far higher than OpenAI’s previously disclosed valuation of $86 billion from earlier this year.
In comparison to the $86 billion it received in a tender offer earlier this year, OpenAI’s new valuation would be 74% greater.
This would solidify OpenAI’s position as one of the largest firms globally.
As per the report, it is anticipated that Thrive Capital, a significant supporter of the company in earlier rounds, will spearhead the next investment.
Microsoft, Apple, and Nvidia are among the other stated investors in OpenAI; these companies have a vested interest in the AI startup’s success.
According to Bloomberg, OpenAI is in discussions with several banks to raise $5 billion in loans.
These IT behemoths have a great deal invested in and partnered on numerous AI projects. Therefore their success is closely linked to OpenAI.
The viral chatbot ChatGPT generated a frenzy propelling OpenAI to the forefront of the artificial intelligence business.
The startup, run by Sam Altman and financed by IT powerhouse Microsoft, has sparked a renaissance in Silicon Valley interest in the field.
Microsoft has spent more than $13 billion on OpenAI, with $1 billion in 2019 and $10 billion in 2023.
Microsoft’s investment comprises a significant number of Azure cloud credits as well as a small cash reserve.
The startup has not commented on the funding talks. People familiar with the agreement noted that the conversations are still ongoing, and the numbers may change.
We earlier reported that OpenAI had disclosed blocking several ChatGPT accounts linked to an Iranian influence effort that created and circulated content about the US presidential election, among other issues.
