OpenAI reportedly in talks for new funding round at $100 billion valuation
Following a string of billion-dollar investments, which catapulted its valuation to a staggering $86 billion, ChatGPT creator OpenAI is once again in the spotlight for a potential funding round.
This time, the company is reportedly in talks to secure an even more impressive tranche of funding, led by previous backer Thrive Capital with a $1 billion investment, which could push its valuation beyond the $100 billion mark, Per TechCrunch.
Microsoft, another recurring investor and key ally of OpenAI, is also anticipated to join this funding effort, although specific details about other potential contributors remain under wraps. Other notable backers of OpenAI, such as Khosla Ventures, Infosys, and Y Combinator, may also be involved, adding to the significance of this investment round.
If successful, this would make OpenAI not only one of the most valuable AI startups in history but also a dominant force in the broader tech landscape.
This potential infusion of capital could mark OpenAI’s largest external funding since the massive Microsoft $10 billion deal in 2023. So far OpenAI has raised a total of $11.3 billion in funding over 7 rounds according to Crunchbase.
The timing of this investment is crucial for OpenAI, as the company is in dire need of additional funds. According to reports from The Wall Street Journal, OpenAI’s annualized revenue exceeded $3.4 billion earlier this year. However, this impressive figure is overshadowed by the company’s projected losses, which are on track to reach nearly $5 billion by the end of the year. Moreover, OpenAI has already burned through $8.5 billion in its pursuit of advancing AI technology, primarily in training and staffing.
The stakes are high for OpenAI. As the company continues to push the boundaries of artificial intelligence, the financial pressure mounts. This new round of funding could be a lifeline, providing the necessary resources to sustain its ambitious projects and maintain its leadership in the AI race.
Source: https://www.techloy.com/openai-reportedly-in-talks-for-new-funding-round-at-100-billion-valuatio/
