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Updated December 23rd, 2023 at 10:40 IST

OpenAI to raise more funds at $100 billion valuation

OpenAI is said to be in talks regarding a potential funding collaboration for a novel chip enterprise with G42, a company based in Abu Dhabi.

Reported by: Business Desk
Sam Altman
Sam Altman | Image:Reuters Breakingviews
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OpenAI is in preliminary discussions to secure a new round of funding with a valuation that could surpass $100 billion, according to the latest media reports.  Individuals familiar with the matter indicated that the specific terms, valuation, and timing for this funding initiative have yet to be finalised and remain subject to change.

Furthermore, OpenAI is said to be in talks regarding a potential funding collaboration for a novel chip enterprise with G42, a company based in Abu Dhabi. The nature of the relationship between this chip venture and OpenAI's broader funding aspirations remains uncertain. Reports suggest that OpenAI is exploring the possibility of raising between $8 billion and $10 billion from G42.

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Separately, OpenAI is nearing the completion of a distinct tender offer spearheaded by Thrive Capital. This would facilitate an opportunity for employees to offload shares at an anticipated valuation of $86 billion.

Microsoft's investment commitment to OpenAI exceeds $10 billion. The tech giant's involvement with OpenAI dates back to November 2022, when OpenAI introduced ChatGPT, a conversational AI tool that has heightened the company's prominence and valuation. Notably, OpenAI previously conducted a share sale amounting to $300 million at a $30 billion valuation.

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Recently, OpenAI CEO Sam Altman faced a brief period of removal from his position on November 17, only to be reinstated four days later with assurances of a revamped board structure. Microsoft has refrained from commenting on these developments when approached by media outlets, while OpenAI has yet to respond to similar requests.

(With Reuters inputs)

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Published December 23rd, 2023 at 09:02 IST

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