Backed by Microsoft Corp, OpenAI is reportedly in the initial stages of securing new funding, potentially boosting its valuation to $100 billion or more, according to sources familiar with the situation.
This funding round, still in the preliminary discussion phase with potential investors, has not yet established specific details such as valuation, terms, and timing, and could be subject to change.
Should this funding materialize as anticipated, OpenAI would become the second most valuable startup in the U.S., trailing only Elon Musk’s Space Exploration Technologies Corp, based on CB Insights data.
The San Francisco-based AI company is also preparing for a separate tender offer in early January, allowing employees to sell shares at an estimated $86 billion valuation, as previously reported by Bloomberg.
OpenAI has gained significant attention in the AI sector, particularly since the launch of ChatGPT, a chatbot known for generating remarkably human-like text responses.
This development has placed OpenAI at the forefront of Silicon Valley startups, attracting $13 billion in funding, primarily from Microsoft. This surge in interest has led to a broader recognition of AI’s potential, reshaping the technology industry in a matter of months.
Other major tech companies like Amazon.com and Alphabet’s Google have subsequently invested billions in AI initiatives, including OpenAI’s competitor Anthropic.
Salesforce has also made a significant investment in Hugging Face, valuing it at $4.5 billion. Meanwhile, Nvidia Corp, known for its AI-capable semiconductors, disclosed over two dozen investments in the sector in 2023.
Additionally, OpenAI has been in talks with Abu Dhabi-based G42 to raise funds for a new chip venture.
These discussions, according to insiders, involve raising between $8 billion and $10 billion from G42, though it’s not clear if this semiconductor venture is directly linked to OpenAI’s broader funding efforts.
