OpenAI Seeks Funding at $100B Valuation

OpenAI Seeks Funding at $100B Valuation

December 22 (Reuters) – Bloomberg News reported on Friday that OpenAI is in early negotiations to seek a new round of investment at a valuation of at least $100 billion, citing individuals familiar with the subject.

The terms, value, and timing of the investment round have not yet been completed and may change, according to the article.

According to the source, OpenAI has also discussed raising funds for a new chip partnership with Abu Dhabi-based G42.

According to the source, it is unclear whether the chip venture and overall business investment are connected, and OpenAI has explored raising between $8 billion and $10 billion from G42.

According to the source, OpenAI plans to launch a secondary tender offer coordinated by Thrive Capital in early January, allowing staff to sell shares valued at $86 billion.

Microsoft (MSFT.O) has pledged to invest more than $10 billion in OpenAI, which launched ChatGPT in November 2022, kicking off the generative artificial intelligence boom.

When approached by Reuters, Microsoft stated that it had nothing to give. OpenAI did not reply to a request for comment from Reuters.

ChatGPT, a chatbot that can create human-like replies based on user instructions, has aided AI’s appeal and spurred OpenAI’s stratospheric climb in price. The corporation previously sold $300 million in shares at a $30 billion value.

In late November, OpenAI CEO Sam Altman announced that Microsoft would join the company’s board as a non-voting observer.

Altman was fired by OpenAI on November 17 without explanation, raising concerns among investors and staff. Four days later, he was restored with the promise of a new board.

Share this on