OpenAI Engages in Discussions for New Funding, Potential Valuation at $100 Billion
(Reuters) – OpenAI is in early talks to raise at least $100 billion in new funding, Bloomberg reported on Friday, citing people with knowledge of the matter.
The terms, valuation and timing of the funding round have not yet been finalized and are still subject to change, according to the report.
According to the report, OpenAI has also been in talks with Abu Dhabi-based G42 to secure funding for a new chip company.
It’s unclear whether the chip venture and the broader venture funding were connected, with the report saying OpenAI has been in talks to raise $8 billion to $10 billion from G42.
OpenAI is set to conduct a separate tender offer led by Thrive Capital in early January, which will allow employees to sell $86 billion worth of stock, according to the report.
Microsoft has committed to invest more than $10 billion in OpenAI, which kicked off the generative AI craze in November 2022 with the release of ChatGPT.
Microsoft said it had nothing to share when contacted by Reuters. OpenAI did not respond to Reuters’ request for comment.
ChatGPT, a chatbot that can produce human-like responses based on user prompts, has helped popularize artificial intelligence and fueled the rise in value of San Francisco-based OpenAI. The company has previously sold shares for $300 million worth $30 billion.
In late November, OpenAI CEO Sam Altman said that Microsoft would take a silent observer position on the company’s board.
OpenAI had ousted Altman on Nov. 17 without a detailed reason, setting off alarm bells among investors and employees. He was reinstated four days later with the promise of a new government.
