OpenAI is looking to raise $150 billion in capital

Reportedly in talks with investors, OpenAI, the firm behind the well-known chatbot ChatGPT, hopes to raise $6.5 billion at a $150 billion value. Bloomberg, citing people familiar with the matter, said that OpenAI would become one of the most valuable firms globally at that valuation.

OpenAI is worth $150 billion, which is more than SHEIN, Stripe, or Revolut combined. Of the young private tech businesses, only SpaceX (reportedly valued at more than $200 billion) and Bytedance, the parent company of TikTok (around $230 billion) would be valued higher.

The $86 billion valuation from the company’s earlier this year tender offer pales in comparison to the latest valuation, which does not include money to be raised. According to one of the persons who spoke with Bloomberg, OpenAI is also reportedly in discussions to obtain $5 billion in loans from banks in the form of a revolving credit line.

Prominent financiers and possible capital sources

Thrive Capital is supposedly leading the investment round. The company’s biggest backer, Microsoft, is anticipated to take part as well. There are also rumors that Apple and Nvidia discussed investing.

The most recent advancements highlight investors’ tremendous interest in and faith in OpenAI’s future and its capacity to fundamentally alter the artificial intelligence landscape. The corporation might improve its R&D and strengthen its position in the market with the extra money. Additionally, it’s said that the business is almost ready to release “Strawberry,” a new AI model with “think”-like capabilities.

Influence on the AI sector and future prospects

The completion of the funding round is probably going to have a significant impact on the AI sector as a whole. It’s unclear how OpenAI will make use of the extra resources or what new developments and applications might come from this.

Analysts predict that in the upcoming years, there will be a significant increase in demand for AI-supported solutions. OpenAI has the potential to be a major force in determining this future thanks to its financial resources and innovative position.

Komal Patil: