OpenAI, the creator of ChatGPT, is in discussions for a new funding round that could potentially value the company at an astounding $100 billion or more, as reported by Bloomberg. If successful, this funding could elevate OpenAI's status to become one of the most valuable startups globally. CBInsights suggests that this move could position OpenAI as the second-most valuable startup in the US, trailing only Elon Musk's SpaceX.
Funding Round in Progress:
Insiders familiar with the matter have disclosed ongoing discussions with potential investors for the fundraising round. However, specific details such as terms, valuation, and the exact timing of the funding remain unresolved and are subject to potential alterations. This development follows closely after a separate tender offer led by Thrive Capital, valuing OpenAI at $86 billion.
OpenAI's Ongoing Dialogue with G42:
OpenAI has also been engaged in talks with Abu Dhabi-based G42. In October, G42 revealed a partnership with OpenAI aimed at delivering advanced AI solutions to the UAE and regional markets. While financial specifics were not disclosed, this collaboration might aid OpenAI in securing around $10 billion, expanding its funding endeavours for the Tigris chip initiative. OpenAI CEO Sam Altman has been actively seeking investments for this chipmaking venture, aiming to develop semiconductors capable of rivalling NVIDIA's technology.
Additionally, OpenAI is poised to conclude a separate tender offer facilitated by Thrive Capital in early January, enabling employees to sell shares at the $86 billion valuation. Microsoft has previously committed to investing over $10 billion in OpenAI, a move triggered by ChatGPT's launch in November 2022, which sparked the generative AI trend. However, Microsoft declined to comment when approached by Reuters, and OpenAI did not respond to a request for comment from the news agency.
ChatGPT, renowned for its ability to generate human-like responses based on user prompts, has significantly bolstered AI's popularity, leading to a meteoric surge in San Francisco-based OpenAI's valuation. Previously, the company conducted a $300 million share sale, pegging its valuation at $30 billion.
In late November, OpenAI CEO Sam Altman revealed that Microsoft would assume a non-voting, observer position on the company's board.
(With input from agencies)
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