Artificial intelligence giant OpenAI is reportedly in discussions to secure a massive new round of funding that could push its valuation to $150 billion.
According to sources familiar with the matter, OpenAI is looking to raise $6.5 billion from investors at this valuation. This valuation figure is a major leap from the company’s $80 billion valuation earlier this year.
OpenAI in talks to secure $5B revolving credit facility
According to Bloomberg, OpenAI is also reportedly in talks with banks to secure a $5 billion revolving credit facility. This move is similar to that adopted by other tech giants like Meta and Uber before their initial public offerings.
Thrive Capital is reported to be leading the funding round. Tech giants like Microsoft are also said to participate. There are also reports that Apple and Nvidia have been in discussions about potential investments.
This latest funding effort would mark a big jump from OpenAI’s $29 billion valuation just last year. Earlier reports by the Wall Street Journal from August revealed that OpenAI’s new funding round can push its valuation over $100 billion.
The report from that time stated that Microsoft is also involved in the funding round. Microsoft had invested $10 billion in OpenAI in early 2023. Additionally, it has a 49% stake in OpenAI and has invested $13 billion since 2019.
OpenAI’s popularity came after launch of ChatGPT
OpenAI’s eye popping rise in valuation comes as a part of the success of its AI chatbot, ChatGPT. ChatGPT made its debut in 2022 and has created an AI revolution.
The company is planning several updates for the AI chatbot this year with its new AI model ‘Strawberry’ to hit the market in two weeks as per reports.
OpenAI’s Chief Financial Officer, Sarah Friar, told employees in a memo last month that the new financing would support the company’s computing power needs and other operational expenses.
She also mentioned plans for a tender offer later this year, allowing employees to sell some of their shares.
Source: https://www.cryptopolitan.com/openai-aims-for-150-billion-valuation/