Leading AI start-up, OpenAI is reportedly considering raising $6.5 billion from investors at a valuation of $150 billion. Additionally, OpenAI is also considering taking $5 billion in debt from banks as a revolving credit facility.
As per reports, Thrive Capital would lead the funding round, and the funding might find participation from Microsoft Corp., Apple Inc. and Nvidia Corp. OpenAI Chief Financial Officer Sarah Friar said the investment funds will assist computing power and other operating expenses. Friar also recently wrote to her team in a memo that OpenAI is considering allowing employees to sell some of their shares in a tender offer later this year.
OpenAI is still holding discussions regarding the same, and terms could change.
Many firms including Meta, Alibaba Group Holding, Uber Technologies Inc. and DoorDash have previously taken up the revolving credit facility. The facility from Wall Street helps with credit lines before an initial public offering, and boosts banking rapport. Usually, it is the banks that are also rewarded when companies resort to this facility as lenders, too, offer better terms on the financing.
OpenAI has rapidly evolved since its launch in 2015. In April, Cathie Wood also invested in the start-up outside of the traditional stock buying process as OpenAI, expects have a market value of $16 trillion by 2030.
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Source: https://www.cryptonewsz.com/openai-seeks-to-raise-6-5-b-at-a-valuation-of-150-b/