OpenAI is reportedly in discussions to raise up to $100 billion in a funding round that could value the company at approximately $830 billion, according to the Wall Street Journal, which cited anonymous sources. The company aims to complete this funding by the end of the first quarter of next year and may seek investments from sovereign wealth funds.
The Information initially reported on this potential deal, suggesting a valuation of around $750 billion. This funding is crucial as OpenAI plans to invest significantly in AI technology and expand its global partnerships. The financial boost would assist in covering increasing compute costs, which appear to be exceeding what can be supported by existing partnerships and credits.
As competition grows from companies like Anthropic and Google, OpenAI is accelerating the release of new models and enhancing its presence in the developer ecosystem. However, investor sentiment around AI has recently cooled, with concerns about the sustainability of heavy investments from major players like Amazon, Microsoft, and Oracle. Additionally, chip production is facing challenges due to memory chip shortages, which could impact the broader tech industry.
OpenAI is also rumored to be considering an initial public offering (IPO) to raise funds for its development efforts, which are currently generating an estimated annual revenue of about $20 billion. There are speculations that the company is seeking a $10 billion investment from Amazon, which would provide access to Amazon’s new AI computing chips.
If successful, this funding round could significantly increase OpenAI’s financial resources, which currently exceed $64 billion, based on PitchBook data. The company was last valued at around $500 billion in a secondary transaction.
OpenAI has not yet responded to requests for comment.
“OpenAI Aims for $100 Billion Fundraising Round, Targeting an Impressive $830 Billion Valuation”
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