OpenAI in talks to raise new funding at $100 billion valuation – Bloomberg News
2023.12.22 18:53
© Reuters. FILE PHOTO: OpenAI logo is seen in this illustration taken, February 3, 2023. REUTERS/Dado Ruvic/Illustration
(Reuters) -OpenAI is in early talks to raise a fresh round of funding at a valuation at or above $100 billion, Bloomberg News reported on Friday citing people with knowledge of the matter.
The terms, valuation and timing of the funding round have not yet been finalized and could still change, the report added.
OpenAI has also held discussions to raise funding for a new chip venture with Abu Dhabi-based G42, according to the report.
It is unclear if the chip venture and wider company funding were related, the report said, adding that OpenAI has discussed raising between $8 billion and $10 billion from G42.
OpenAI is set to complete a separate tender offer led by Thrive Capital in early January, which would allow employees to sell shares at a valuation of $86 billion, according to the report.
Microsoft (NASDAQ:) has committed to invest over $10 billion into OpenAI, the firm that had kicked off the generative AI craze last November by releasing ChatGPT.
Both OpenAI and Microsoft did not immediately respond to Reuters’ requests for comment.
ChatGPT, a chatbot that can generate human-like responses based on user prompts, has helped AI’s popularity and fueled a meteoric rise in the valuation of San Francisco-based OpenAI. The company has previously made a $300 million share sale at a valuation of $30 billion.
In late November, OpenAI CEO Sam Altman said Microsoft will take a non-voting, observer position on the company’s board.
OpenAI had ousted Altman on Nov. 17 without any detailed cause, setting off alarm bells among investors and employees. He was reinstated four days later with the promise of a new board.
