OpenAI aims to secure investment to reach a $100 billion valuation: Report

OpenAI is reportedly in talks to raise more funds at a valuation of over $100 billion, which would make it one of the world’s most valuable private companies. This would grant OpenAI “hectocorn” status, joining the ranks of companies like SpaceX and Shein. Despite a drought in IPOs in 2023, the investment in OpenAI reflects the positive sentiment around generative AI and its potential in the public markets. The drama surrounding OpenAI’s boardroom, including the ousting and return of Sam Altman, raises questions about the management and handling of the powerful technology vested in the nonprofit organization. This new technology raises complex questions for investors and directors, and we are only at the beginning stages of understanding its implications. Moreover, OpenAI’s partnership with Microsoft is under investigation by the UK CMA (Competitions and Market Authority) to determine if it served to block out competitors and potentially violate competition rules. These developments highlight the ongoing discussions and challenges surrounding OpenAI and its strategic partnerships as we enter the new year.