OpenAI reportedly in talks to raise new funding at $100 billion valuation

OpenAI reportedly in talks to raise new funding at $100 billion valuation

OpenAI reportedly in talks to raise new funding at $100 billion valuation

OpenAI is in early talks to raise a new round of funding at a valuation of at least $100 billion, a Bloomberg report said citing people familiar with the matter.

According to the report, the funding round’s conditions, valuation, and schedule have not yet been decided upon and are subject to change.

According to the report, OpenAI has also discussed raising money for a new chip venture with G42, based in Abu Dhabi.

The report stated that OpenAI has talked about raising between $8 billion and $10 billion from G42, but it is unclear if the chip venture and broader company funding were related.

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 (MSFT.O) has committed to invest over $10 billion in OpenAI, which kicked off the generative artificial intelligence craze in November 2022 by releasing ChatGPT.

Microsoft said it had nothing to share when contacted by Reuters. OpenAI did not respond to a Reuters request for comment.

ChatGPT, a chatbot which 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 would 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.

(with inputs from Reuters)