Key Insights
- OpenAI’s market valuation could reach $150 billion with the latest funding round.
- The AI firm is also in talks for a $5 billion revolving credit line with various banks.
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OpenAI is aiming to raise $6.5 billion in a recent funding initiative that could elevate the company’s valuation to $150 billion, as reported by Bloomberg on Wednesday, citing insiders aware of the details. The investment might involve Thrive Capital, Microsoft, Apple, and Nvidia.
Additionally, OpenAI is exploring a $5 billion debt facility, as noted by Bloomberg. This new valuation marks an increase from its prior valuation of $86 billion. The funds will likely enhance OpenAI’s capabilities, covering computing power and associated costs.
Should this valuation materialize, OpenAI would become the highest valued venture-backed private entity in the U.S., surpassing SpaceX, according to Crunchbase, and would exceed the initial market capitalizations of nearly all U.S. venture-backed startups that have gone public, barring Meta (previously Facebook).
The AI startup, renowned for its sophisticated AI models, including the GPT series, has raised about $13.5 billion over 11 funding rounds.
Microsoft has positioned itself as the largest investor in OpenAI to date, contributing approximately $13 billion. The potential participation of Nvidia would denote a significant partnership given its pivotal role as a leading chip producer critical for AI advancement.
