OpenAI, the company behind the successful chatbot ChatGPT, is in advanced talks to raise billions of US dollars in a new funding round that would value the company at more than 100 billion US dollars. These discussions come at a time when OpenAI seeks to further solidify its leading position in the booming artificial intelligence sector.
Among the potential investors is Thrive Capital, which plans to invest 1 billion US dollars and lead the round, according to two people familiar with the matter. Other investors are also in talks to participate in this round.
The exact terms of the new funding round have not yet been finalized, but it is expected that OpenAI will achieve a significant capital increase with it. Already, OpenAI is being traded on the secondary market with a value of over 110 billion US dollars, making a valuation of this magnitude seem plausible.
The latest capital raise by OpenAI took place at the beginning of 2023, when Microsoft invested 10 billion USD, valuing the company at around 30 billion USD at that time. However, it remains unclear whether Microsoft will participate in the current round.
Thrive Capital, under the leadership of Josh Kushner, has established itself as one of the most significant supporters of OpenAI. Last year, Thrive Capital acquired shares from employees, valuing the company at $86 billion.
OpenAI has significantly gained in value over the past few months thanks to substantial advancements in generative AI and rising expectations for economic transformation through this technology. Nvidia, whose chips drive AI advancements, recently reported a doubling of its revenue to $30 billion for the quarter ending in July.
OpenAI's revenues have also increased significantly, reaching an annual revenue of $2 billion at the beginning of this year. However, there are growing concerns about how start-ups like OpenAI can remain profitable despite the high costs of training and operating AI models.
With the new funding round, OpenAI could secure the necessary capital to advance the development of its next major model, GPT-5, and remain a leader in the competition with rivals like Anthropic, Google, and Elon Musk's xAI, which recently raised 6 billion USD.
The first reports about OpenAI's talks with investors came from the Wall Street Journal.
