OpenAI Seeks $100B Valuation In Funding Talks
On Friday, OpenAI began discussions to secure a new round of funding, with the potential of surpassing a staggering $100 billion valuation, according to sources familiar with the matter. While the terms and timing of this funding round are not yet finalized and subject to change, OpenAI is also exploring possible funding opportunities with Abu Dhabi-based company G42 for a new chip venture.
It remains unclear whether the chip venture and the broader company funding are directly linked, but reports indicate that OpenAI has been in discussions with G42 regarding a funding range of $8 billion to $10 billion. These developments come as OpenAI is expected to conclude a separate tender offer led by Thrive Capital in early January, enabling employees to sell their shares at an $86 billion valuation.
Microsoft, having already pledged over $10 billion in investments, is a key player in OpenAI’s funding landscape. It was in November 2022 that OpenAI captivated the AI community with the release of ChatGPT, a generative artificial intelligence chatbot capable of simulating human-like interactions based on user prompts.
When approached for comment by Reuters, Microsoft stated that it had no information to share at the time. Meanwhile, OpenAI did not respond to Reuters’ request for comment.
OpenAI’s San Francisco-headquartered company has seen exponential growth in valuation, largely driven by the popularity of its ChatGPT. Previously, the firm conducted a share sale valued at $300 million, yielding a $30 billion valuation.
In late November, OpenAI CEO Sam Altman announced that Microsoft would hold a non-voting observer position on the company’s board. Altman’s temporary removal from his position on November 17, followed by his reinstatement four days later with a promise of a new board, raised concerns among investors and employees but lacked a clear explanation.
As the global AI craze continues to gather momentum, OpenAI’s pursuit of substantial funding and its strategic partnerships have the potential to shape the landscape of the industry. With Microsoft’s significant investment and discussions surrounding a new chip venture, OpenAI aims to solidify its position as a leader in advanced AI technology, thereby unlocking further possibilities in our increasingly interconnected world.
Regardless of the outcome of these funding talks, one thing is certain – OpenAI’s influence on the AI frontier is poised to grow even further, enabling transformative advancements in various sectors and offering innovative solutions to intricate challenges faced by humanity.
In the face of this exciting development, the global tech community awaits the outcomes of OpenAI’s funding discussions, eager to witness the impact these investments will have on the future of AI and its potential to revolutionize the world as we know it.
