OpenAI in Talks to Raise New Funding at $100 Bil. Valuation: Bloomberg News
14:00 JST, December 23, 2023
(Reuters) – OpenAI is in early talks to raise a fresh round of funding at a valuation at or above $100 billion, Bloomberg News 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 could still change, the report said.
OpenAI has also held discussions to raise funding for a new chip venture with Abu Dhabi-based G42, according to the report.
It is unclear if the chip venture and wider company funding were related, the report said, adding that OpenAI has discussed raising between $8 billion and $10 billion from G42.
OpenAI is set to complete a separate tender offer led by Thrive Capital in early January, which would allow employees to sell shares at a valuation of $86 billion, according to the report.
Microsoft MSFT.O has committed to invest over $10 billion in OpenAI, which kicked off the generative artificial intelligence craze in November 2022 by releasing ChatGPT.
Microsoft said it had nothing to share when contacted by Reuters. OpenAI did not respond to a Reuters request for comment.
ChatGPT, a chatbot which can generate human-like responses based on user prompts, has helped AI’s popularity and fueled a meteoric rise in the valuation of San Francisco-based OpenAI. The company has previously made a $300 million share sale at a valuation of $30 billion.
In late November, OpenAI CEO Sam Altman said Microsoft would take a non-voting, observer position on the company’s board.
OpenAI had ousted Altman on Nov. 17 without any detailed cause, setting off alarm bells among investors and employees. He was reinstated four days later with the promise of a new board.
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