Sources familiar with the matter have revealed that OpenAI, the parent company of ChatGPT, is seeking fresh funding at an astounding $100 billion valuation. This fundraising round comes after the recent drama surrounding the ouster and subsequent return of Sam Altman, OpenAI’s CEO. If successful, this funding round would make OpenAI the second-most valuable startup in the United States, trailing only behind SpaceX.
While specific details regarding the terms and timing of the fundraising round have yet to be finalized, preliminary discussions indicate that OpenAI’s valuation could skyrocket. This follows a separate tender offer set to conclude in early January, allowing employees to sell their shares at a valuation of $86 billion.
OpenAI, renowned for its groundbreaking artificial intelligence innovations, gained widespread attention and raised $13 billion following the launch of ChatGPT just one year ago. This has reshaped the AI landscape and propelled the company’s growing valuation.
The escalating valuation of OpenAI is a testament to the continued fervor and interest surrounding artificial intelligence advancements. Notably, tech giant Microsoft is one of the company’s largest investors. Additionally, Amazon.com Inc. and Alphabet Inc. have made substantial investments in OpenAI’s rival, Anthropic. Salesforce Inc. led an investment round in Hugging Face, assigning a valuation of $4.5 billion to the company. Nvidia Corp., a major semiconductor producer for AI tasks, has also disclosed multiple AI-focused investments throughout 2023, underscoring the increased interest and financial support from industry giants in the AI sector.
Sam Altman, CEO of OpenAI, has been actively seeking funding for the chipmaking initiative known as Tigris. This initiative aims to develop competitive semiconductors for the AI chip market, which is currently dominated by Nvidia. Altman has been in discussions with G42, based in Abu Dhabi, for funding the new chip venture. Anonymous sources indicate that the talks revolve around raising between $8 billion and $10 billion.
Notably, OpenAI and G42 had previously announced a partnership in October to deliver advanced AI solutions to the United Arab Emirates and regional markets. The partnership is led by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and chair of the Abu Dhabi Investment Authority.
OpenAI’s pursuit of fresh funding at a $100 billion valuation reflects the company’s ongoing commitment to innovation and its ambitious goals in the AI sector. With the backing of notable investors and its continued advancements in artificial intelligence, OpenAI is poised to further shape and redefine the future of AI technology.
