OpenAI in Talks for Early Funding, Aims for Valuation of $100 Billion+

OpenAI, the San Francisco-based artificial intelligence powerhouse, is in preliminary discussions to secure a fresh round of funding, aiming for a valuation that could surpass $100 billion. The specifics regarding the terms, valuation, and precise timing of this funding initiative have yet to be solidified and remain subject to potential alterations.

OpenAI has also reportedly engaged in dialogues regarding funding for a new chip project with G42, an entity based in Abu Dhabi. However, there is no definitive correlation established between the chip venture discussions and the broader funding discussions at OpenAI. The discussions with G42 aim to secure an investment ranging from $8 billion to $10 billion.

In a separate venture, OpenAI is expected to conclude a tender offer led by Thrive Capital by early January. This move is designed to enable the company’s employees to vend shares, with a valuation of $86 billion envisioned.

Microsoft has already pledged an investment exceeding $10 billion in OpenAI. This commitment follows OpenAI’s significant contribution to the emergence of generative artificial intelligence in November 2022 with the launch of ChatGPT, a conversational AI system capable of producing human-like responses based on user input.

The debut of ChatGPT significantly boosted the profile of AI technology, propelling OpenAI’s valuation to unprecedented heights. Previously, the company executed a share sale amounting to $300 million, valuing the company at $30 billion.

In late November, OpenAI underwent a leadership shuffle involving CEO Sam Altman, who was abruptly removed on November 17 without a detailed explanation. This caused concern among investors and staff. However, Altman was reinstated just four days later, accompanied by assurances of a revamped board structure. Microsoft’s participation in OpenAI’s board will be in a non-voting, observer capacity, as disclosed by Altman during the November developments.