OpenAI, is reportedly in the early stages of discussions to secure a new funding round, targeting a valuation of $100 billion or more, according to sources close to the matter, as reported by Bloomberg News.
The potential funding round, which is still in flux regarding specifics such as terms and timing, could propel OpenAI to become the second-most valuable startup in the United States, following in the footsteps of SpaceX, the aerospace giant led by Elon Musk.
OpenAI is concurrently finalizing a separate tender offer set to conclude in January, allowing employees to trade their shares at a valuation of $86 billion. Thrive Capital is at the forefront of leading this tender offer, and the demand among investors is reportedly robust, reflecting the company’s escalating prominence.
Notably, Microsoft, a longstanding supporter of OpenAI, has committed to investing over $10 billion in the company, solidifying its position as a key backer. The infusion of funds from Microsoft came on the heels of OpenAI’s game-changing release of ChatGPT a year ago, which triggered an unprecedented surge in interest and investments in generative AI.
The landscape in which OpenAI operates is intensifying, with major tech players like Amazon, Google (Anthropic), Salesforce (Hugging Face), and Nvidia making substantial strides in AI-related ventures.
In a bid to further assert its dominance in the AI arena, OpenAI is exploring a chip venture named Tigris, aiming to produce semiconductors that would compete with Nvidia, the current market leader. Discussions regarding funding for Tigris involve a substantial investment ranging from $8 billion to $10 billion, with G42, an Abu Dhabi-based entity, showing keen interest.
OpenAI faced a momentary leadership crisis recently when CEO Sam Altman was unexpectedly removed from his position. The subsequent reinstatement of Altman after a brief period of upheaval is coupled with the appointment of a new board, signaling a commitment to stability and a refocus on product development.
As OpenAI navigates these intricate funding talks and a rapidly evolving industry landscape, the company’s valuation surge mirrors the heightened interest and investments in AI technologies. The profound impact of ChatGPT in reshaping perceptions of AI’s potential underscores OpenAI’s pivotal role in driving the industry forward. Neither Microsoft nor OpenAI has provided official comments in response to recent queries.
Related:
- ByteDance Justifies Use of OpenAI Technology in a Competitive AI Landscape
- OpenAI has Applied for GPT-6 and 7 Trademarks in China
- Google launches Gemini AI Nano, Pro, Ultra, empowering Bard with Gemini Pro to challenge ChatGPT
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