OpenAI is reportedly in early discussions to secure a new funding round with a target valuation exceeding $100 billion, potentially making it the second-most valuable startup in the U.S. The company, known for its ChatGPT, has been a trailblazer in the AI industry, attracting significant investment and contributing to the broader trend of substantial funding in AI-related ventures.
27 December 2023 – OpenAI, the creator of ChatGPT, is reportedly in early discussions to secure a new round of funding with a target valuation at or exceeding $100 billion. If successful, this funding round would solidify OpenAI’s position as one of the world’s most valuable startups, trailing only Elon Musk’s Space Exploration Technologies Corp in the United States.
People familiar with the matter have disclosed that discussions are underway with potential investors, although details such as the terms, valuation, and timing of the funding round are yet to be finalized and remain subject to change.
OpenAI is currently gearing up to complete a separate tender offer in early January, allowing employees to sell shares at a valuation of $86 billion. This initiative, led by Thrive Capital, has reportedly generated significant demand from investors, surpassing the available shares.
If the anticipated funding round materializes, OpenAI would become the second-most valuable startup in the U.S., showcasing the remarkable trajectory of the artificial intelligence (AI) company. The surge in valuation began a year ago with the release of ChatGPT, a chatbot capable of generating human-like sentences and poetry in response to prompts. OpenAI’s valuation skyrocketed, attracting $13 billion in funding from Microsoft Corp and reshaping perceptions of AI within the tech industry.
This move by OpenAI aligns with the broader trend of significant investments in AI-related ventures. Competitors like Anthropic, backed by Amazon.com Inc and Alphabet Inc, have seen substantial funding. Hugging Face, with an investment led by Salesforce Inc, achieved a valuation of $4.5 billion. Nvidia Corp, a major player in AI-focused semiconductors, also disclosed numerous investments in 2023.
As AI continues to redefine industries, OpenAI’s pursuit of fresh funding underscores the growing importance and potential of artificial intelligence technologies in the evolving landscape of the tech sector. – ref: Bloomberg
