OpenAI engaged in early funding discussions aiming for a valuation exceeding $100 billion

OpenAI, the San Francisco-based artificial intelligence powerhouse, is currently engaged in discussions to secure a fresh round of funding. The company aims for a valuation that could exceed $100 billion, although the specific terms, valuation, and timing of the funding initiative are yet to be finalized. The discussions are subject to potential alterations.

In addition to the funding talks, OpenAI has reportedly entered into dialogues with G42, an Abu Dhabi-based entity, regarding funding for a new chip project. However, it is unclear whether these discussions are directly related to the broader funding discussions at OpenAI. The report mentions that OpenAI is seeking an investment ranging from $8 billion to $10 billion from G42.

Separately, OpenAI is expected to conclude a tender offer led by Thrive Capital by early January. This tender offer would enable the company’s employees to sell shares, with a valuation of $86 billion anticipated.

Microsoft has already committed to investing more than $10 billion in OpenAI. This investment follows OpenAI’s significant contribution to the development of generative artificial intelligence with the launch of ChatGPT, a conversational AI system that can generate human-like responses. The introduction of ChatGPT greatly enhanced the company’s profile and resulted in a surge in valuation. Previously, OpenAI conducted a share sale worth $300 million, valuing the company at $30 billion.

In late November, OpenAI experienced a leadership shuffle involving CEO Sam Altman. Altman was swiftly removed from his position on November 17, causing concern among investors and staff members. However, just four days later, Altman was reinstated, and there were assurances of a revamped board structure. It was disclosed that Microsoft’s participation on OpenAI’s board would be in a non-voting, observer capacity, as mentioned during the November developments.