OpenAI Eyes $150 Billion Valuation in New Fundraising Talks
The funding round is expected to be led by Thrive Capital.
OpenAI is in discussions to raise $6.5 billion in a new funding round that could boost its valuation to $150 billion, anonymous sources familiar with the matter told Bloomberg. This figure marks a significant jump from the company's $86 billion valuation in its previous tender offer earlier this year, positioning OpenAI as one of the world’s most valuable startups.[1]
Read More: OpenAI Introduces GPT-4o
In addition to the equity raise, OpenAI is negotiating a $5 billion debt financing deal in the form of a revolving credit facility from Wall Street banks, according to one of the sources. Both the fundraising and debt talks are still ongoing, and the terms could change.
The funding round is expected to be led by Thrive Capital. Microsoft, OpenAI’s largest investor, is expected to participate in the round, while Apple and Nvidia have also been in talks to invest.
Like other major tech startups, such as Meta Platforms, Alibaba, Uber, and DoorDash, OpenAI is exploring a credit facility ahead of a potential IPO. Such deals often help strengthen relationships with banks, who are then rewarded with roles in future IPOs. In exchange, banks may offer better financing terms.
Founded in 2015, OpenAI has become a key player in the AI industry, capturing global attention with the launch of ChatGPT in 2022. The company's tools, which can generate realistic text and images from simple prompts, have ignited a surge of interest from both consumers and investors.
Recently, OpenAI, led by CEO Sam Altman, announced a multi-year partnership with Condé Nast. This collaboration will integrate content from brands such as Vogue and The New Yorker into OpenAI’s products, including ChatGPT and SearchGPT.
In May, OpenAI unveiled its latest innovation in AI, introducing the world to GPT-4o just one year after GPT-4's introduction. GPT-4o is available to all, including unpaid users.
A month earlier, OpenAI introduced a new voice-cloning tool. It comes with a caveat: strict controls will be enforced until safeguards are established to mitigate the risks of audio manipulation aimed at deceiving listeners.